United Rentals (URI - Free Report) closed the most recent trading day at $188.43, moving +0.16% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Heading into today, shares of the equipment rental company had gained 3.62% over the past month, lagging the Construction sector's gain of 3.73% and outpacing the S&P 500's gain of 3.19% in that time.
Wall Street will be looking for positivity from URI as it approaches its next earnings report date. This is expected to be October 28, 2020. On that day, URI is projected to report earnings of $4.33 per share, which would represent a year-over-year decline of 27.35%. Meanwhile, our latest consensus estimate is calling for revenue of $2.14 billion, down 14.09% from the prior-year quarter.
URI's full-year Zacks Consensus Estimates are calling for earnings of $15.31 per share and revenue of $8.35 billion. These results would represent year-over-year changes of -21.57% and -10.75%, respectively.
It is also important to note the recent changes to analyst estimates for URI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. URI is currently a Zacks Rank #3 (Hold).
Digging into valuation, URI currently has a Forward P/E ratio of 12.28. For comparison, its industry has an average Forward P/E of 20.36, which means URI is trading at a discount to the group.
It is also worth noting that URI currently has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.