Why United Rentals (URI) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
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 1,557 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 $21 billion (as of Sep 30, 2023). Equipment rentals represented 84% of total revenues for the nine months ended Sep 30, 2023.
URI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Building Products - Miscellaneous industry's P/E of 17X, shares of United Rentals are trading at a forward P/E of 12.5X. URI also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 8.3X, and a Price/Sales ratio of 2.6X.
Many value investors pay close attention to a company's earnings as well. For URI, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $41.03 per share for 2023. Per share URI boasts an average earnings surprise of 1.2%.
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
