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United Rentals (URI) Laps the Stock Market: Here's Why

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United Rentals (URI - Free Report) closed the latest trading day at $509.58, indicating a +0.88% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.

The the stock of equipment rental company has risen by 9.21% in the past month, lagging the Construction sector's gain of 11.16% and overreaching the S&P 500's gain of 4.85%.

The investment community will be paying close attention to the earnings performance of United Rentals in its upcoming release. It is anticipated that the company will report an EPS of $11.45, marking a 17.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.64 billion, indicating a 10.3% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $41.07 per share and a revenue of $14.22 billion, demonstrating changes of +26.37% and +22.18%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for United Rentals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. At present, United Rentals boasts a Zacks Rank of #3 (Hold).

In terms of valuation, United Rentals is presently being traded at a Forward P/E ratio of 12.3. This indicates a discount in contrast to its industry's Forward P/E of 17.48.

It is also worth noting that URI currently has a PEG ratio of 0.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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