United Rentals (URI) Dips More Than Broader Markets: What You Should Know
United Rentals (URI) closed at $260.12 in the latest trading session, marking a -1.86% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the equipment rental company had lost 6.32% in the past month. In that same time, the Construction sector lost 7.02%, while the S&P 500 lost 6.69%.
Investors will be hoping for strength from United Rentals as it approaches its next earnings release. The company is expected to report EPS of $6.62, up 42.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 17.93% from the year-ago period.
URI's full-year Zacks Consensus Estimates are calling for earnings of $29.79 per share and revenue of $11.31 billion. These results would represent year-over-year changes of +35.04% and +16.42%, respectively.
It is also important to note the recent changes to analyst estimates for United Rentals. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 remained stagnant. United Rentals is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note United Rentals's current valuation metrics, including its Forward P/E ratio of 8.9. This valuation marks a discount compared to its industry's average Forward P/E of 12.55.
Meanwhile, URI's PEG ratio is currently 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. URI's industry had an average PEG ratio of 0.9 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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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