Back to top

Image: Bigstock

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

Read MoreHide Full Article

United Rentals (URI - Free Report) closed at $435.63 in the latest trading session, marking a +1.22% move from the prior day. This change outpaced the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.

Prior to today's trading, shares of the equipment rental company had gained 28.93% over the past month. This has outpaced the Construction sector's gain of 13.24% and the S&P 500's gain of 4.25% in that time.

Wall Street will be looking for positivity from United Rentals as it approaches its next earnings report date. In that report, analysts expect United Rentals to post earnings of $9.20 per share. This would mark year-over-year growth of 17.05%. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, up 23.96% from the year-ago period.

URI's full-year Zacks Consensus Estimates are calling for earnings of $39.70 per share and revenue of $14.15 billion. These results would represent year-over-year changes of +22.15% and +21.55%, respectively.

Investors should also note any recent changes to analyst estimates for United Rentals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection remained stagnant. United Rentals is currently a Zacks Rank #3 (Hold).

Digging into valuation, United Rentals currently has a Forward P/E ratio of 10.84. This valuation marks a discount compared to its industry's average Forward P/E of 16.93.

It is also worth noting that URI currently has a PEG ratio of 0.67. 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. The Building Products - Miscellaneous was holding an average PEG ratio of 1.77 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 57, which puts it in the top 23% 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.

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


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