United Rentals (URI) Stock Falls Amid Market Uptick: What Investors Need to Know

The latest trading session saw United Rentals (URI) ending at $476.02, denoting a -0.04% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 1.47%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

Shares of the equipment rental company have appreciated by 16.3% over the course of the past month, underperforming the Construction sector's gain of 16.47% and outperforming the S&P 500's gain of 10.72%.

The investment community will be paying close attention to the earnings performance of United Rentals in its upcoming release. The company's upcoming EPS is projected at $11.42, signifying a 17.25% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.64 billion, up 10.3% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $40.90 per share and a revenue of $14.22 billion, representing changes of +25.85% and +22.18%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for United Rentals. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.36% higher. Currently, United Rentals is carrying a Zacks Rank of #3 (Hold).

Investors should also note United Rentals's current valuation metrics, including its Forward P/E ratio of 11.64. Its industry sports an average Forward P/E of 16.34, so one might conclude that United Rentals is trading at a discount comparatively.

It's also important to note that URI currently trades at a PEG ratio of 0.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.72.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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