Should you buy Uber shares in Q3 2021?

Uber Technologies Inc. (NYSE:UBER) has inked a deal with Florists' Transworld Delivery, FTD, a floral wire service company based in Illinois. The agreement allows customers to order flowers directly from the Uber and Uber eats apps. It kicked off on Wednesday in a few cities, including New York, Philadelphia, and Chicago, before expanding nationwide by 2022.

Commenting on the deal, Uber's Global Head of Grocery and New Verticals, Raj Beri, said: 

Uber is trying to expand its product offerings beyond ride-sharing. The pandemic affected the company’s primary revenue stream last year amid country lockdowns and restrictions on movement.

Why buy Uber shares in Q3 2021?

Although Uber is yet to swing to a profit on a trailing 12-month basis, the company could soon return to profitability as earnings continue to recover. Analysts expect Uber’s earnings per share to grow by 43.30% this year before increasing 50.40% next year. In addition, analysts also see Uber’s bottom line growing at an average annual growth rate of 65.50% over the next five years. 

Therefore, while value investors may decide to wait and monitor the performance for the next twelve months before buying, high-growth investors could be looking to invest in Uber shares now ahead of an exciting growth story.

Technical overview: Uber Technologies stock price forecast for August 2021

Technically, Uber shares appear to be trading under significant bearish pressure in the intraday chart. The stock price has fallen below the 100-day moving average, pushing it closer to oversold conditions in the 14-day RSI.

Uber reports its fiscal second-quarter results next week, creating the perfect scenario for a rebound. Therefore investors can target rebounds at approximately $48.91 or higher at $52.04. The support levels are $41.57 and $40.11.

Bottom line: the case for buying Uber stock’s rebound

In summary, Uber shares have declined significantly since April. Although the company is yet to swing to a profit on a trailing 12-month basis, it seems to be getting closer. Therefore, investors will be excited ahead of earnings, especially after Wednesday’s report. Now could be the time to buy UBER stock.