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United Rentals (URI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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United Rentals (URI - Free Report) closed the most recent trading day at $550.32, moving -1.93% from the previous trading session. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.

Shares of the equipment rental company witnessed a loss of 2.28% over the previous month, trailing the performance of the Construction sector with its loss of 1.43% and the S&P 500's gain of 1.2%.

Market participants will be closely following the financial results of United Rentals in its upcoming release. The company plans to announce its earnings on January 24, 2024. The company is predicted to post an EPS of $11.31, indicating a 16.12% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.63 billion, up 10.07% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Rentals. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.07% higher. United Rentals currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, United Rentals is holding a Forward P/E ratio of 12.95. For comparison, its industry has an average Forward P/E of 17.16, which means United Rentals is trading at a discount to the group.

Also, we should mention that URI has a PEG ratio of 0.87. 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 1.79 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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