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

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In the latest trading session, United Rentals (URI - Free Report) closed at $229.16, marking a -1.43% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.84%.

Heading into today, shares of the equipment rental company had gained 7.51% over the past month, outpacing the Construction sector's gain of 2.19% and the S&P 500's gain of 2.12% in that time.

Investors will be hoping for strength from URI as it approaches its next earnings release. In that report, analysts expect URI to post earnings of $4.21 per share. This would mark a year-over-year decline of 24.82%. Our most recent consensus estimate is calling for quarterly revenue of $2.17 billion, down 11.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.70 per share and revenue of $8.41 billion, which would represent changes of -14.45% and -10.03%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for URI. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.45% higher within the past month. URI is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, URI is currently trading at a Forward P/E ratio of 13.92. This valuation marks a discount compared to its industry's average Forward P/E of 21.63.

Investors should also note that URI has a PEG ratio of 2.1 right now. 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 was holding an average PEG ratio of 1.97 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 118, which puts it in the top 47% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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