United Rentals (URI) Laps the Stock Market: Here's Why
The most recent trading session ended with United Rentals (URI) standing at $693.27, reflecting a +1.03% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq increased by 0.9%.
The the stock of equipment rental company has risen by 9.72% in the past month, leading the Construction sector's gain of 9.43% and the S&P 500's gain of 3.85%.
Investors will be eagerly watching for the performance of United Rentals in its upcoming earnings disclosure. The company's upcoming EPS is projected at $8.32, signifying a 4.65% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.42 billion, up 4.02% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $42.98 per share and revenue of $15 billion. These totals would mark changes of +5.5% and +4.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for United Rentals. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. As of now, United Rentals holds a Zacks Rank of #3 (Hold).
Digging into valuation, United Rentals currently has a Forward P/E ratio of 15.97. This indicates a discount in contrast to its industry's Forward P/E of 18.78.
Also, we should mention that URI has a PEG ratio of 2.55. 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. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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United Rentals, Inc. (URI) : Free Stock Analysis Report
