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United Rentals (URI) Gains As Market Dips: What You Should Know

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United Rentals (URI - Free Report) closed at $251.99 in the latest trading session, marking a +1.49% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the equipment rental company had lost 16.53% over the past month, lagging the Construction sector's loss of 5.7% and the S&P 500's loss of 0.62% in that time.

Wall Street will be looking for positivity from United Rentals as it approaches its next earnings report date. In that report, analysts expect United Rentals to post earnings of $6.62 per share. This would mark year-over-year growth of 42.06%. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, up 17.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $29.79 per share and revenue of $11.31 billion, which would represent changes of +35.04% and +16.42%, respectively, from the prior year.

Any recent changes to analyst estimates for United Rentals should also be noted by investors. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate remained stagnant. United Rentals is currently a Zacks Rank #3 (Hold).

In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 8.34. Its industry sports an average Forward P/E of 12.13, so we one might conclude that United Rentals is trading at a discount comparatively.

Meanwhile, URI's PEG ratio is currently 0.48. 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 0.96 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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