United Rentals (URI) Soars 5.2%: Is Further Upside Left in the Stock?
United Rentals URI shares soared 5.2% in the last trading session to close at $398.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18% loss over the past four weeks.
The company is benefiting from persistent share growth opportunities for certain non-residential verticals. In 2023, URI is expected to witness another profitable year buoyed by federally funded infrastructure projects, industrial manufacturing, energy and power projects.
This equipment rental company is expected to post quarterly earnings of $7.93 per share in its upcoming report, which represents a year-over-year change of +38.4%. Revenues are expected to be $3.09 billion, up 22.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For United Rentals, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on URI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
United Rentals belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Masco (MAS), closed the last trading session 2.3% higher at $51.30. Over the past month, MAS has returned -8.9%.
Masco's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $0.65. Compared to the company's year-ago EPS, this represents a change of -31.6%. Masco currently boasts a Zacks Rank of #3 (Hold).
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