Wells Fargo’s Best Growth Stocks: 28 Stocks With The Highest Consensus EPS Growth Estimates

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

Consensus Long-Term EPS Growth Estimate: 38%

Number of Hedge Fund Holders: 145

Uber Technologies, Inc. (NYSE:UBER) is the most widely used ride-sharing service provider in the US. As of H1 2024, $9.2 billion or 51% of the firm’s revenue came from its Mobility business while an additional 34% was accounted for by the Delivery business. Consequently, consumer spending power in the food and travel industry is the key driver of Uber Technologies, Inc. (NYSE:UBER)’s hypothesis. For its Mobility business, spending is measured by bookings and these tend to make or break the stock. The stock’s dependence on bookings was clear after Uber Technologies, Inc. (NYSE:UBER)’s third-quarter earnings saw the shares fall by 7% when its bookings missed analyst estimates. The firm is also one of the most growth-focused players in the industry. Its initiatives in autonomous ride-sharing, urban air mobility, and shuttle services show its management has one eye on the future. Uber Technologies, Inc. (NYSE:UBER) stands to benefit particularly from these up-and-coming markets since its brand image makes it the go-to platform for 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.”