United Rentals (URI) Outpaces Stock Market Gains: What You Should Know
United Rentals (URI) closed the latest trading day at $574.20, indicating a +1.05% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the equipment rental company had gained 20.44% over the past month, outpacing the Construction sector's gain of 13.44% and the S&P 500's gain of 5.16% in that time.
Investors will be eagerly watching for the performance of United Rentals in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $11.45, marking a 17.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $41.07 per share and revenue of $14.22 billion, indicating changes of +26.37% and +22.18%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for United Rentals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% increase. At present, United Rentals boasts a Zacks Rank of #3 (Hold).
In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 13.84. This indicates a discount in contrast to its industry's Forward P/E of 18.32.
Meanwhile, URI's PEG ratio is currently 0.93. 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. As the market closed yesterday, the Building Products - Miscellaneous industry was having an average PEG ratio of 1.88.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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United Rentals, Inc. (URI) : Free Stock Analysis Report
