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

United Rentals (URI) closed the most recent trading day at $155.72, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.67%.

Heading into today, shares of the equipment rental company had lost 1.11% over the past month, lagging the Construction sector's gain of 1.02% and the S&P 500's gain of 1.91% in that time.

Wall Street will be looking for positivity from URI as it approaches its next earnings report date. The company is expected to report EPS of $3.31, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 0.15% from the year-ago period.

URI's full-year Zacks Consensus Estimates are calling for earnings of $20.63 per share and revenue of $9.55 billion. These results would represent year-over-year changes of +5.69% and +2.15%, respectively.

Investors might also notice recent changes to analyst estimates for URI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. URI currently has a Zacks Rank of #3 (Hold).

Digging into valuation, URI currently has a Forward P/E ratio of 7.44. This represents a discount compared to its industry's average Forward P/E of 18.16.

Investors should also note that URI has a PEG ratio of 0.59 right now. 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 1.36 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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