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United Rentals (URI) Outpaces Stock Market Gains: What You Should Know

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United Rentals (URI - Free Report) closed the most recent trading day at $383.52, moving +1.45% from the previous trading session. This change outpaced the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.

Coming into today, shares of the equipment rental company had gained 2.15% in the past month. In that same time, the Construction sector gained 1.8%, while the S&P 500 gained 5.67%.

Investors will be hoping for strength from United Rentals as it approaches its next earnings release, which is expected to be April 26, 2023. On that day, United Rentals is projected to report earnings of $8.12 per share, which would represent year-over-year growth of 41.71%. Meanwhile, our latest consensus estimate is calling for revenue of $3.14 billion, up 24.31% from the prior-year quarter.

URI's full-year Zacks Consensus Estimates are calling for earnings of $42.21 per share and revenue of $14.07 billion. These results would represent year-over-year changes of +29.88% and +20.85%, respectively.

Investors might also notice recent changes to analyst estimates for United Rentals. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. United Rentals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 8.96. This represents a discount compared to its industry's average Forward P/E of 13.4.

We can also see that URI currently has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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.

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


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