Here's Why United Rentals (URI) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
United Rentals (URI)
Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,600 rental locations in the United States, Canada, Europe, Australia and New Zealand. Moreover, it operates in 49 U.S. states and every Canadian province. The company offers 4,800 classes of equipment for rent at a total original equipment cost (“OEC”) of $21.3 billion (as of Jun 30, 2024). Equipment rentals represented 84% of total revenues in 2023.
URI boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of United Rentals are trading at a forward earnings multiple of 15.7X, as well as a PEG Ratio of 1.6, a Price/Cash Flow ratio of 8.4X, and a Price/Sales ratio of 3.1X.
A company's earnings performance is important for value investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for URI, while the Zacks Consensus Estimate has increased $0.64 to $44.50 per share. URI also holds an average earnings surprise of 4.8%.
Investors should take the time to consider URI for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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United Rentals, Inc. (URI) : Free Stock Analysis Report