In the latest trading session, United Rentals (URI) closed at $248.86, marking a -0.89% move from the previous day. This change lagged the S&P 500’s 0.08% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the equipment rental company had lost 15.86% over the past month, lagging the Construction sector’s loss of 11.83% and the S&P 500’s loss of 6.03% in that time.
Investors will be hoping for strength from United Rentals as it approaches its next earnings release. The company is expected to report EPS of $6.62, up 42.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, up 17.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $29.79 per share and revenue of $11.3 billion. These totals would mark changes of +35.04% and +16.31%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for United Rentals. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. United Rentals currently has a Zacks Rank of #3 (Hold).
Investors should also note United Rentals’s current valuation metrics, including its Forward P/E ratio of 8.43. This valuation marks a discount compared to its industry’s average Forward P/E of 12.35.
We can also see that URI currently 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 0.97 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 179, which puts it in the bottom 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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