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

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In the latest trading session, United Rentals (URI - Free Report) closed at $568.23, marking a -0.61% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.45%.

Market participants will be closely following the financial results of United Rentals in its upcoming release. It is anticipated that the company will report an EPS of $11.45, marking a 17.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $41.07 per share and a revenue of $14.22 billion, demonstrating changes of +26.37% and +22.18%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for United Rentals. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. At present, United Rentals boasts a Zacks Rank of #3 (Hold).

With respect to valuation, United Rentals is currently being traded at a Forward P/E ratio of 13.92. For comparison, its industry has an average Forward P/E of 18.6, which means United Rentals is trading at a discount to the group.

It's also important to note that URI currently trades at a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Miscellaneous industry was having an average PEG ratio of 1.92.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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