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United Rentals (URI) Stock Moves -0.52%: What You Should Know

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In the latest trading session, United Rentals (URI - Free Report) closed at $364.09, marking a -0.52% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.17%. Meanwhile, the Dow lost 1.02%, and the Nasdaq, a tech-heavy index, lost 2.45%.

Prior to today's trading, shares of the equipment rental company had gained 4.12% over the past month. This has outpaced the Construction sector's loss of 1.74% and the S&P 500's loss of 5.25% in that time.

United Rentals will be looking to display strength as it nears its next earnings release. In that report, analysts expect United Rentals to post earnings of $9.93 per share. This would mark year-over-year growth of 34.37%. Meanwhile, our latest consensus estimate is calling for revenue of $3.29 billion, up 18.46% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for United Rentals. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.62% higher within the past month. United Rentals is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 9.95. For comparison, its industry has an average Forward P/E of 12.34, which means United Rentals is trading at a discount to the group.

Meanwhile, URI's PEG ratio is currently 0.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous was holding an average PEG ratio of 1.1 at yesterday's closing price.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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