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

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In the latest trading session, United Rentals (URI - Free Report) closed at $386.20, marking a +0.54% move from the previous day. This move lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.

Prior to today's trading, shares of the equipment rental company had lost 17.89% over the past month. This has lagged the Construction sector's loss of 1.53% and the S&P 500's gain of 1.72% in that time.

Investors will be hoping for strength from United Rentals as it approaches its next earnings release. In that report, analysts expect United Rentals to post earnings of $8.01 per share. This would mark year-over-year growth of 39.79%. Meanwhile, our latest consensus estimate is calling for revenue of $3.09 billion, up 22.33% from the prior-year quarter.

URI's full-year Zacks Consensus Estimates are calling for earnings of $41.92 per share and revenue of $14 billion. These results would represent year-over-year changes of +28.98% and +20.25%, respectively.

Any recent changes to analyst estimates for United Rentals should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. United Rentals currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, United Rentals is holding a Forward P/E ratio of 9.16. This represents a discount compared to its industry's average Forward P/E of 13.38.

Also, we should mention that URI has a PEG ratio of 0.56. 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. 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 88, putting it in the top 35% 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.

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