United Rentals (URI - Free Report) closed the most recent trading day at $125.14, moving -0.45% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 1.04%.
Heading into today, shares of the equipment rental company had lost 22.97% over the past month, lagging the Construction sector's loss of 9.96% and the S&P 500's loss of 6.28% in that time.
Investors will be hoping for strength from URI as it approaches its next earnings release, which is expected to be January 23, 2019. On that day, URI is projected to report earnings of $4.63 per share, which would represent year-over-year growth of 38.62%. Meanwhile, our latest consensus estimate is calling for revenue of $2.14 billion, up 11.22% from the prior-year quarter.
URI's full-year Zacks Consensus Estimates are calling for earnings of $16.17 per share and revenue of $7.89 billion. These results would represent year-over-year changes of +52.69% and +18.86%, respectively.
It is also important to note the recent changes to analyst estimates for URI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. URI is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that URI has a Forward P/E ratio of 7.78 right now. Its industry sports an average Forward P/E of 15.63, so we one might conclude that URI is trading at a discount comparatively.
Investors should also note that URI has a PEG ratio of 0.44 right now. 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. The Building Products - Miscellaneous industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.