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United Rentals (URI) Gains But Lags Market: What You Should Know

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United Rentals (URI - Free Report) closed at $184.58 in the latest trading session, marking a +1.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.54%. At the same time, the Dow added 1.59%, and the tech-heavy Nasdaq gained 0.98%.

Heading into today, shares of the equipment rental company had gained 13.49% over the past month, outpacing the Construction sector's gain of 7.96% and the S&P 500's gain of 8% in that time.

URI will be looking to display strength as it nears its next earnings release. In that report, analysts expect URI to post earnings of $4.25 per share. This would mark a year-over-year decline of 28.69%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, down 14.27% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $8.35 billion, which would represent changes of -21.82% and -10.68%, respectively, from the prior year.

Any recent changes to analyst estimates for URI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.54% higher. URI is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, URI is currently trading at a Forward P/E ratio of 11.96. This valuation marks a discount compared to its industry's average Forward P/E of 21.02.

We can also see that URI currently has a PEG ratio of 1. 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 1.94 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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