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

United Rentals (URI) closed at $389.02 in the latest trading session, marking a -0.15% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.

Coming into today, shares of the equipment rental company had gained 16.62% in the past month. In that same time, the Construction sector gained 5.22%, while the S&P 500 gained 3.98%.

United Rentals will be looking to display strength as it nears its next earnings release. In that report, analysts expect United Rentals to post earnings of $9.20 per share. This would mark year-over-year growth of 17.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.43 billion, up 23.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $39.70 per share and revenue of $14.15 billion. These totals would mark changes of +22.15% and +21.55%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for United Rentals. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. United Rentals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 16.57, which means United Rentals is trading at a discount to the group.

Investors should also note that URI has a PEG ratio of 0.6 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. URI's industry had an average PEG ratio of 1.64 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.

To follow URI in the coming trading sessions, be sure to utilize Zacks.com.

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United Rentals, Inc. (URI) : Free Stock Analysis Report

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Zacks Investment Research