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Why United Rentals (URI) Outpaced the Stock Market Today

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In the latest trading session, United Rentals (URI - Free Report) closed at $437.14, marking a +0.89% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.

The equipment rental company's stock has dropped by 6.57% in the past month, falling short of the Construction sector's loss of 6.52% and the S&P 500's loss of 3.39%.

Investors will be eagerly watching for the performance of United Rentals in its upcoming earnings disclosure. On that day, United Rentals is projected to report earnings of $11.32 per share, which would represent year-over-year growth of 22.11%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.68 billion, indicating a 20.6% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $40.61 per share and a revenue of $14.2 billion, representing changes of +24.95% and +21.97%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for United Rentals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. At present, United Rentals boasts a Zacks Rank of #2 (Buy).

With respect to valuation, United Rentals is currently being traded at a Forward P/E ratio of 10.67. This represents a discount compared to its industry's average Forward P/E of 14.51.

We can additionally observe that URI currently boasts a PEG ratio of 0.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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