Ride-sharing companies Uber and Lyft are racing higher, and there's a chance both stocks could kick into overdrive.
Uber rallied over 3% after Wedbush added the stock to its best ideas list, and Lyft followed suit by climbing 1%. Both ride-share stocks have been on the up and up since hitting lows last fall, but Oppenheimer technician Ari Wald says the months-long rallies for both names aren't enough to change his cautious tune.
"There really isn't a lot of history to go off of, so I can't really say our conviction is high," Wald said Monday on CNBC's "Trading Nation."
However, Wald does point out that despite Uber's short trading history, he does believe $34 is a key level.
"The trading action [for Uber] can be considered positive over $34, that was the stock's October peak," he said. "Very often, former resistance becomes support, so as long as [you're above $34] it looks like the stock can push higher."
Uber was trading at $37.90 in Tuesday's premarket.
Joule Financial chief investment officer Quint Tatro says that not only does he think that the ride-share stocks have hit a bottom, investors should actually go ahead and own both given that they currently look "very attractive."
Tatro said from a fundamental perspective, he prefers Lyft slightly over Uber given its possible path to profitability. He also agrees with Wedbush's Uber upgrade and says both stocks are solid bets for investors.
"It's a little bit cheaper on a price-to-sales metric," he said Monday on CNBC's "Trading Nation." "Nonetheless, [Uber has got] a tremendous amount of cash, and they're kind of more of a technology logistics play."
Uber is still 22% from its initial IPO price of $45 from May. Lyft, on the other hand, has fallen 38% from its initial IPO price of $72 when it went public last March. It was trading at $48.49 a share in Tuesday's premarket, up 1.1% from Monday's close.
