For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 1,543 rental locations in the United States, Canada, Europe, Australia and New Zealand. Moreover, it operates in 49 U.S. states and every Canadian province. The company offers 4,800 classes of equipment for rent at a total original equipment cost (“OEC”) of $20.6 billion (as of Jun 30, 2023).
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 11.1X for the current fiscal year compared to the Building Products - Miscellaneous industry's P/E of 15.4X. Additionally, URI has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 6.9X. Value investors should also note URI's Price/Sales ratio of 2.3X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.59 to $40.60 per share. URI has an average earnings surprise of 1.1%.
URI should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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