UBER TECHNOLOGIES INC (NYSE:UBER) Demonstrates Strong Growth and Technical Breakout Potential

A combined method for stock analysis uses both fundamental and technical views to find good opportunities. The plan of choosing good growth stocks with positive technical breakout patterns tries to find companies showing solid business growth while also displaying good price momentum. This method tries to match basic financial strength with market timing, possibly finding stocks ready for more upward movement. By concentrating on companies with good growth basics that are also moving past technical resistance points, investors might place themselves in stocks with both strong business outlooks and positive market feeling.

UBER TECHNOLOGIES INC (NYSE:UBER) is an interesting example for this investment method. The ride-hailing and delivery service has changed city transport since it began, growing from basic ride-sharing to full mobility and delivery services in world markets.

Fundamental Growth Profile

UBER's fundamental analysis shows a company in a good growth stage, scoring 7 out of 10 in the Growth rating based on ChartMill's fundamental analysis report. The company shows notable growth in important financial numbers:

• Earnings Per Share has jumped by 214.13% over the last year
• Revenue increase of 18.15% in the last year, with a five-year average yearly growth rate of 27.60%
• Expected future EPS growth of 23.67% each year, with Revenue forecast to increase at 13.12% per year

These growth numbers are especially important because they are higher than normal market averages and show the company's skill in scaling its service well. The good growth rating matches the screening method's focus on companies showing better-than-average growth, which is key for finding stocks with possibility for more increase.

Profitability and Financial Health

The company's change to lasting profitability marks a key development stage. UBER scores 5 out of 10 in both Profitability and Financial Health ratings, showing sound basic strength:

• Return on Equity of 55.87% is with the best in the Ground Transportation industry
• Profit Margin of 26.68% does better than 92.86% of industry peers
• Operating Margin of 9.53% puts the company in the top part of its sector
• Altman-Z score of 4.32 shows low bankruptcy risk, better than 83.33% of competitors
• Debt to Free Cash Flow ratio of 1.12 shows good debt management ability

These numbers support the screening criteria's need for acceptable profitability and health, making sure that growth is backed by good financial management instead of being driven by too much risk-taking.

Technical Breakout Setup

UBER's technical view adds to its good fundamentals, with ChartMill giving a technical rating of 7 out of 10 and an even better setup rating of 8 out of 10. The stock shows an interesting technical pattern:

• Long-term trend stays positive even with short-term consolidation
• Trading in the higher part of its 52-week range (59.33 - 101.99)
• Current price action shows consolidation between 91.18 and 101.30
• Little resistance above current levels, with the closest important resistance at 100.10
• Good support area between 90.99 and 95.55 gives a sensible stop-loss zone

The technical setup indicates the stock is placed for a possible breakout above the 98.51-100.10 resistance area, which might start more upward momentum. This matching of technical patterns with fundamental strength is exactly what the screening method looks to find.

Valuation Considerations

While UBER trades at a Price/Earnings ratio of 33.39, which seems high next to the S&P 500 average of 26.19, the price must be thought about with context:

• PEG ratio (Price/Earnings to Growth) shows acceptable price when including growth
• Price/Forward Earnings of 26.40 lines up with industry averages
• Good growth path may support higher price multiples
• Price/Free Cash Flow ratio seems positive compared to industry peers

The valuation score of 4 out of 10 shows these mixed points, suggesting that while not low-priced, the cost may be acceptable given the company's growth possibilities.

Investment Implications

The mix of UBER's good growth fundamentals, better profitability, and positive technical setup makes a notable chance for investors using this method. The company's growth across Mobility, Delivery, and Freight parts gives several growth drivers, while its service model continues to show scaling advantages. The technical consolidation near highs, together with limited overhead resistance, indicates possibility for more upward movement if the stock can move past key resistance points.

For investors wanting to look for similar chances, more stocks meeting these points can be found using this Strong Growth Stocks with Good Technical Setup Ratings screen.

Disclaimer: This analysis is for information only and does not make up investment advice, suggestion, or support of any security. Investors should do their own research and think about their personal money situation before making investment choices. Past results do not show future outcomes.