United Rentals (URI) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, United Rentals (URI) closed at $573.42, marking a -0.91% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
The equipment rental company's shares have seen an increase of 21.57% over the last month, surpassing the Construction sector's gain of 15.49% and the S&P 500's gain of 5.24%.
Analysts and investors alike will be keeping a close eye on 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. In the meantime, our current consensus estimate forecasts the revenue to be $3.64 billion, indicating a 10.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $41.07 per share and a revenue of $14.22 billion, representing changes of +26.37% and +22.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for United Rentals. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Right now, United Rentals possesses a Zacks Rank of #3 (Hold).
In the context of valuation, United Rentals is at present trading with a Forward P/E ratio of 14.09. For comparison, its industry has an average Forward P/E of 19.14, which means United Rentals is trading at a discount to the group.
Meanwhile, URI's PEG ratio is currently 0.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous industry had an average PEG ratio of 1.93 as trading concluded yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
