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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 $249.33 in the latest trading session, marking a +0.19% move from the prior day. This move outpaced the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Coming into today, shares of the equipment rental company had lost 11.19% in the past month. In that same time, the Construction sector lost 9.62%, while the S&P 500 lost 5.08%.

Wall Street will be looking for positivity from United Rentals as it approaches its next earnings report date. On that day, United Rentals is projected to report earnings of $6.51 per share, which would represent year-over-year growth of 39.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.69 billion, up 17.83% from the year-ago period.

URI's full-year Zacks Consensus Estimates are calling for earnings of $29.48 per share and revenue of $11.32 billion. These results would represent year-over-year changes of +33.64% and +16.47%, respectively.

Any recent changes to analyst estimates for United Rentals 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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

Investors should also note United Rentals's current valuation metrics, including its Forward P/E ratio of 8.44. This represents a discount compared to its industry's average Forward P/E of 12.39.

Also, we should mention that URI has a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 0.98 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 202, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow URI in the coming trading sessions, be sure to utilize Zacks.com.


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