In the latest trading session, United Rentals (URI) closed at $453.62, marking a +0.36% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.
Prior to today's trading, shares of the equipment rental company had gained 0.13% over the past month. This has outpaced the Construction sector's loss of 5.03% and lagged the S&P 500's gain of 0.38% in that time.
United Rentals will be looking to display strength as it nears its next earnings release. In that report, analysts expect United Rentals to post earnings of $11.32 per share. This would mark year-over-year growth of 22.11%. Meanwhile, our latest consensus estimate is calling for revenue of $3.68 billion, up 20.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.60 per share and revenue of $14.19 billion. These totals would mark changes of +24.92% and +21.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for United Rentals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. United Rentals is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Rentals is holding a Forward P/E ratio of 11.13. This represents a discount compared to its industry's average Forward P/E of 15.21.
Also, we should mention that URI has a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.52 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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