Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

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

Consensus ROE: 45%

Number of Hedge Fund Investors in Q2 2024: 145

Uber Technologies, Inc. (NYSE:UBER) is the largest ride sharing services provider in the US. The firm has leveraged its online platform to provide additional services as well such as food delivery. In fact, along with being the largest ride sharing company, the firm is also the second biggest food delivery company in the US after DoorDash. As a result, Uber Technologies, Inc. (NYSE:UBER) benefits from earning from multiple businesses. These also enable the firm to target high growth initiatives such as air taxis, autonomous ride sharing vehicles, and dedicated shuttles. Starting from air taxis, Uber Technologies, Inc. (NYSE:UBER) has invested $125 million into Joby Aviation as of 2020. For autonomous vehicles and shuttles, the firm has teamed up with General Motors to create a robotaxi service, and in October, the firm started a pilot program in New York to ferry users between Midtown New York and LaGuardia Airport. Uber Technologies, Inc. (NYSE:UBER)’s existing market position means that it remains the preferred partner for autonomous vehicles, which could work in its favor down the road.

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.”