In the latest trading session, United Rentals (URI) closed at $118.50, marking a -0.99% move from the previous day. This change lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.72%.
Coming into today, shares of the equipment rental company had lost 13.92% in the past month. In that same time, the Construction sector lost 2.28%, while the S&P 500 lost 2.09%.
Investors will be hoping for strength from URI as it approaches its next earnings release, which is expected to be January 23, 2019. On that day, URI is projected to report earnings of $4.72 per share, which would represent year-over-year growth of 41.32%. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, up 13.3% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.23 per share and revenue of $7.92 billion, which would represent changes of +53.26% and +19.31%, respectively, from the prior year.
Any recent changes to analyst estimates for URI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.59% higher within the past month. URI is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that URI has a Forward P/E ratio of 7.38 right now. This represents a discount compared to its industry's average Forward P/E of 15.12.
It is also worth noting that URI currently has a PEG ratio of 0.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% 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.
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United Rentals, Inc. (URI) : Free Stock Analysis Report
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