Trade-Ideas: United Rentals (URI) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified United Rentals as such a stock due to the following factors:
- URI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $111.2 million.
- URI is up 3.4% today from today's close.
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More details on URI:
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power, and Pump. URI has a PE ratio of 12. Currently there are 5 analysts that rate United Rentals a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for United Rentals has been 1.8 million shares per day over the past 30 days. United Rentals has a market cap of $6.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.45 and a short float of 8.4% with 4.53 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates United Rentals as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- UNITED RENTALS INC's earnings per share declined by 12.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED RENTALS INC increased its bottom line by earning $6.10 versus $5.18 in the prior year. This year, the market expects an improvement in earnings ($7.75 versus $6.10).
- The gross profit margin for UNITED RENTALS INC is rather high; currently it is at 57.40%. Regardless of URI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, URI's net profit margin of 7.02% compares favorably to the industry average.
- URI, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Trading Companies & Distributors industry and the overall market, UNITED RENTALS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, URI has underperformed the S&P 500 Index, declining 15.47% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full United Rentals Ratings Report.
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