United Rentals (URI) Dips More Than Broader Markets: What You Should Know
United Rentals (URI) closed at $274.29 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's 0.93% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the equipment rental company had gained 18.64% over the past month. This has outpaced the Construction sector's gain of 10.79% and the S&P 500's gain of 6.31% in that time.
Investors will be hoping for strength from United Rentals as it approaches its next earnings release, which is expected to be July 27, 2022. In that report, analysts expect United Rentals to post earnings of $6.57 per share. This would mark year-over-year growth of 40.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 17.86% from the year-ago period.
URI's full-year Zacks Consensus Estimates are calling for earnings of $29.65 per share and revenue of $11.32 billion. These results would represent year-over-year changes of +34.41% and +16.47%, respectively.
Investors should also note any recent changes to analyst estimates for United Rentals. These recent revisions tend to reflect the evolving nature of short-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.
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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. United Rentals is currently a Zacks Rank #3 (Hold).
Looking at its valuation, United Rentals is holding a Forward P/E ratio of 9.44. This represents a discount compared to its industry's average Forward P/E of 13.28.
We can also see that URI currently has a PEG ratio of 0.58. 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 was holding an average PEG ratio of 1.12 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 138, which puts it in the bottom 46% 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.
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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United Rentals, Inc. (URI) : Free Stock Analysis Report
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