In the latest trading session, United Rentals (URI) closed at $339.29, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 0.99% gain on the day.
Prior to today's trading, shares of the equipment rental company had lost 4.69% over the past month. This has lagged the Construction sector's loss of 1.95% and the S&P 500's gain of 0.42% in that time.
United Rentals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $9.20, up 17.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, up 23.96% from the year-ago period.
URI's full-year Zacks Consensus Estimates are calling for earnings of $39.70 per share and revenue of $14.15 billion. These results would represent year-over-year changes of +22.15% and +21.55%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.65% lower. United Rentals is currently a Zacks Rank #3 (Hold).
Looking at its valuation, United Rentals is holding a Forward P/E ratio of 8.41. This represents a discount compared to its industry's average Forward P/E of 14.42.
We can also see that URI currently has a PEG ratio of 0.52. 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. URI's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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