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United Rentals (URI) Outpaces Stock Market Gains: What You Should Know
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United Rentals (URI - Free Report) closed at $416.09 in the latest trading session, marking a +1.95% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.68%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq lost 1.7%.
Prior to today's trading, shares of the equipment rental company had lost 11.18% over the past month. This has lagged the Construction sector's loss of 5.84% and the S&P 500's loss of 6.68% in that time.
United Rentals will be looking to display strength as it nears its next earnings release. On that day, United Rentals is projected to report earnings of $7.93 per share, which would represent year-over-year growth of 38.39%. Our most recent consensus estimate is calling for quarterly revenue of $3.09 billion, up 22.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.69 per share and revenue of $14 billion. These totals would mark changes of +28.28% and +20.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for United Rentals. 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.
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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. United Rentals currently has a Zacks Rank of #2 (Buy).
Investors should also note United Rentals's current valuation metrics, including its Forward P/E ratio of 9.79. Its industry sports an average Forward P/E of 13.35, so we one might conclude that United Rentals is trading at a discount comparatively.
Meanwhile, URI's PEG ratio is currently 0.6. 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. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
To follow URI in the coming trading sessions, be sure to utilize Zacks.com.
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United Rentals (URI) Outpaces Stock Market Gains: What You Should Know
United Rentals (URI - Free Report) closed at $416.09 in the latest trading session, marking a +1.95% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.68%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq lost 1.7%.
Prior to today's trading, shares of the equipment rental company had lost 11.18% over the past month. This has lagged the Construction sector's loss of 5.84% and the S&P 500's loss of 6.68% in that time.
United Rentals will be looking to display strength as it nears its next earnings release. On that day, United Rentals is projected to report earnings of $7.93 per share, which would represent year-over-year growth of 38.39%. Our most recent consensus estimate is calling for quarterly revenue of $3.09 billion, up 22.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.69 per share and revenue of $14 billion. These totals would mark changes of +28.28% and +20.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for United Rentals. 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.
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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. United Rentals currently has a Zacks Rank of #2 (Buy).
Investors should also note United Rentals's current valuation metrics, including its Forward P/E ratio of 9.79. Its industry sports an average Forward P/E of 13.35, so we one might conclude that United Rentals is trading at a discount comparatively.
Meanwhile, URI's PEG ratio is currently 0.6. 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. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
To follow URI in the coming trading sessions, be sure to utilize Zacks.com.