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United Rentals (URI) Gains As Market Dips: What You Should Know

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United Rentals (URI - Free Report) closed at $475.06 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.

Prior to today's trading, shares of the equipment rental company had lost 2.07% over the past month. This has was narrower than the Construction sector's loss of 3.12% and lagged the S&P 500's gain of 0.58% in that time.

Investors will be hoping for strength from United Rentals as it approaches its next earnings release. In that report, analysts expect United Rentals to post earnings of $11.32 per share. This would mark year-over-year growth of 22.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.68 billion, up 20.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $40.60 per share and revenue of $14.19 billion, which would represent changes of +24.92% and +21.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for United Rentals. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. United Rentals currently has a Zacks Rank of #3 (Hold).

Digging into valuation, United Rentals currently has a Forward P/E ratio of 11.59. For comparison, its industry has an average Forward P/E of 17.57, which means United Rentals is trading at a discount to the group.

Also, we should mention that URI has a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. URI's industry had an average PEG ratio of 1.63 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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