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Are Investors Undervaluing United Rentals (URI) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is United Rentals (URI - Free Report) . URI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.69. This compares to its industry's average Forward P/E of 13.12. URI's Forward P/E has been as high as 15.80 and as low as 7.49, with a median of 11.80, all within the past year.
URI is also sporting a PEG ratio of 0.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. URI's PEG compares to its industry's average PEG of 0.68. Over the last 12 months, URI's PEG has been as high as 0.97 and as low as 0.43, with a median of 0.69.
Finally, investors will want to recognize that URI has a P/CF ratio of 5.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. URI's current P/CF looks attractive when compared to its industry's average P/CF of 12.36. URI's P/CF has been as high as 9.09 and as low as 4.44, with a median of 7.02, all within the past year.
These are just a handful of the figures considered in United Rentals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URI is an impressive value stock right now.
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Are Investors Undervaluing United Rentals (URI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is United Rentals (URI - Free Report) . URI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.69. This compares to its industry's average Forward P/E of 13.12. URI's Forward P/E has been as high as 15.80 and as low as 7.49, with a median of 11.80, all within the past year.
URI is also sporting a PEG ratio of 0.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. URI's PEG compares to its industry's average PEG of 0.68. Over the last 12 months, URI's PEG has been as high as 0.97 and as low as 0.43, with a median of 0.69.
Finally, investors will want to recognize that URI has a P/CF ratio of 5.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. URI's current P/CF looks attractive when compared to its industry's average P/CF of 12.36. URI's P/CF has been as high as 9.09 and as low as 4.44, with a median of 7.02, all within the past year.
These are just a handful of the figures considered in United Rentals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URI is an impressive value stock right now.