Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
United Rentals (URI)
Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,288 rental locations in United States, Canada and Europe. Moreover, it operates in 49 states and every Canadian province. The company offers 4,300 classes of equipment for rent at a total original equipment cost (“OEC”) of $15.79 billion (as of December 2021).
URI is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.4X for the current fiscal year compared to the Building Products - Miscellaneous industry's P/E of 14.1X. Additionally, URI has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 6.2X. Value investors should also note URI's Price/Sales ratio of 2.2X.
Many value investors pay close attention to a company's earnings as well. For URI, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.68 to $29.64 per share for 2022. Per share URI boasts an average earnings surprise of 2.3%.
Investors should take the time to consider URI for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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United Rentals, Inc. (URI) : Free Stock Analysis Report
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