Market Performance Comparison
United Rentals (URI) closed the latest trading session at $704.44, marking a -1.38% dip from the previous day. Unfortunately, the stock lagged behind the S&P 500, which experienced a 0.31% daily decrease. Similarly, the Dow and Nasdaq both saw downtrends of 0.41% and 0.27%, respectively.
Upcoming Earnings Release
Investors eagerly await United Rentals’ upcoming earnings report. Projections indicate an expected EPS of $8.35, a 5.03% increase from the previous year. Furthermore, the consensus estimate anticipates a revenue of $3.41 billion, up by 3.9% compared to the prior-year quarter.
Analyst Expectations and Stock Performance
Monitoring recent changes in analyst estimates for United Rentals is crucial. These revisions often reflect evolving business trends. Positive adjustments in estimates signify confidence in the company’s future outlook, directly impacting stock performance.
Historical data reinforces this correlation between estimate changes and stock prices. The Zacks Rank model quantifies these alterations, with #1 ranked stocks historically yielding an impressive annual return of +25% since 1988. Currently, United Rentals holds a Zacks Rank of #3 (Hold).
Valuation Metrics
United Rentals is currently trading at a Forward P/E ratio of 16.65, suggesting it is undervalued compared to the industry’s average. Moreover, the company boasts a PEG ratio of 2.66, reflecting its anticipated earnings growth rate.
Industry and Sector Ranking
The Building Products – Miscellaneous sector, to which United Rentals belongs, holds a Zacks Industry Rank of 11, placing it among the top 5% of all industries. Historical data indicates that highly-ranked industries outperform lower-ranked ones by a significant margin.
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The opinions expressed in this article are those of the author and do not reflect the views of Nasdaq, Inc.
