United Rentals (URI) Stock Dips While Market Gains: Key Facts
The latest trading session saw United Rentals (URI) ending at $676.81, denoting a -0.38% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.58%.
The equipment rental company's stock has climbed by 3.79% in the past month, falling short of the Construction sector's gain of 9.47% and outpacing the S&P 500's gain of 2.94%.
The upcoming earnings release of United Rentals will be of great interest to investors. The company is expected to report EPS of $8.32, up 4.65% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.42 billion, indicating a 4.02% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $42.98 per share and revenue of $15 billion, which would represent changes of +5.5% and +4.63%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Rentals. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.32% increase. United Rentals is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, United Rentals is presently being traded at a Forward P/E ratio of 15.81. This valuation marks a discount compared to its industry's average Forward P/E of 18.99.
Meanwhile, URI's PEG ratio is currently 2.53. 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 average PEG ratio for the Building Products - Miscellaneous industry stood at 1.8 at the close of the market yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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United Rentals, Inc. (URI) : Free Stock Analysis Report
