Back to top

Image: Bigstock

United Rentals (URI) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, United Rentals (URI - Free Report) closed at $186.87, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Prior to today's trading, shares of the equipment rental company had gained 12.71% over the past month. This has outpaced the Construction sector's gain of 5.92% and the S&P 500's gain of 3.82% in that time.

URI will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2020. The company is expected to report EPS of $4.33, down 27.35% from the prior-year quarter. 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.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.25% higher within the past month. URI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, URI is holding a Forward P/E ratio of 12.36. For comparison, its industry has an average Forward P/E of 20.38, which means URI is trading at a discount to the group.

It is also worth noting that URI currently has a PEG ratio of 1.03. 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 industry currently had an average PEG ratio of 1.89 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 gauges the strength of our 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Rentals, Inc. (URI) - free report >>

Published in