BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

3. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders In Q2 2024: 145

Projected EPS Growth Rate: 53.2%

Uber Technologies, Inc. (NYSE:UBER) is the dominant player in the US’ ride-sharing industry. It commanded a whopping 76% share of US ride-share spending as of March, ensuring that the space is effectively a duopoly when combined with smaller rival Lyft’s share of 24%. Uber Technologies, Inc.’s (NYSE:UBER) also has been growing its market through new areas such as urban air mobility and targeting tertiary markets via food delivery and other services. The firm has been making a lot of progress on these fronts lately. It has partnered up with GM to start autonomous ride sharing next year and debuted a pilot shuttle project to transport people to the airport in New York City. Uber Technologies, Inc. (NYSE:UBER) is also an investor in Joby Aviation–a firm that is developing electric vertical take off and landing (eVTOL) aircraft–which provides it with inroads into urban air mobility.

RiverPark Advisors mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q1 2024 investor letter. Here is what the fund said:

“UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”