Uber Stock Shows Bearish Trends Despite 50% Upside Forecast

Uber Technologies Inc UBER will report second-quarter earnings on Tuesday. Wall Street expects 31 cents in EPS and $10.5 billion in revenues as the company reports before market hours.

The stock is up 23.23% over the past year, down 6.01% year-to-date.

Let’s look at what the charts indicate for Uber stock, and how the stock currently maps against Wall Street estimates.

Uber Stock Ahead Of Q2 Earnings 

The rise-sharing company’s stock is currently exhibiting strong bearish momentum, with its stock price significantly below key moving averages.

Chart created using Benzinga Pro

Trading at $58.09, Uber is beneath its 8-day, 20-day, 50-day, and 200-day simple moving averages of $62.44, $66.81, $67.97, and $66.01, respectively, all of which are clear bearish signals.

Chart created using Benzinga Pro

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The MACD indicator at -2.60 further supports the bearish trend. However, despite these negative signals, there is buying pressure building, which could indicate a potential bullish reversal in the future.

Additionally, the Relative Strength Index (RSI) is at 27.36, suggesting the stock is oversold and potentially undervalued, which may attract investors looking for opportunities at a discount.

The Bollinger Bands (25), ranging from $58.96 to $76.38, show that Uber is trading well below the lower band, reinforcing the bearish outlook.

Despite the current bearish trend, the combination of oversold conditions and buying pressure could pave the way for a bullish recovery, making Uber an interesting watch for investors anticipating a turnaround.

Analysts See Over 50% Upside: The consensus analyst rating stands at a Buy currently with a price target of $84.62. Recent analyst ratings from JMP Securities, BMO Capital, and Morgan Stanley indicate a 50.13% upside for the stock with an average price target of $87.33.

Price Action: Uber stock was trading at $57.82 at the time of publication.

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