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

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United Rentals (URI) closed at $288.69 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500’s 0.3% gain on the day. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the equipment rental company had lost 8.05% over the past month, lagging the Construction sector’s loss of 4.98% and the S&P 500’s loss of 4.13% 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 $8.88 per share. This would mark year-over-year growth of 34.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, up 18.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.73 per share and revenue of $11.58 billion. These totals would mark changes of +43.83% and +19.17%, respectively, from last year.

Any recent changes to analyst estimates for United Rentals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.

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. The Zacks Consensus EPS estimate has moved 2.25% higher within the past month. United Rentals is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, United Rentals currently has a Forward P/E ratio of 9.21. Its industry sports an average Forward P/E of 12.6, so we one might conclude that United Rentals is trading at a discount comparatively.

It is also worth noting that URI currently has a PEG ratio of 0.52. 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. URI’s industry had an average PEG ratio of 1.05 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 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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