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

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United Rentals (URI) closed at $301.25 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily loss of 1.64%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.

Heading into today, shares of the equipment rental company had lost 1.15% over the past month, lagging the Construction sector's gain of 2.3% and the S&P 500's gain of 0.73% 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 $6.54 per share. This would mark year-over-year growth of 40.34%. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 17.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $29.64 per share and revenue of $11.31 billion. These totals would mark changes of +34.36% and +16.42%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for United Rentals. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 currently has a Zacks Rank of #3 (Hold).

Digging into valuation, United Rentals currently has a Forward P/E ratio of 10.11. This valuation marks a discount compared to its industry's average Forward P/E of 13.66.

Meanwhile, URI's PEG ratio is currently 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 0.87 at yesterday's closing price.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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