United Rentals (URI) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume 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 $116.9 million.
- URI has traded 280,460 shares today.
- URI is trading at 3.15 times the normal volume for the stock at this time of day.
- URI is trading at a new high 4.07% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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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 1. Currently there are 4 analysts that rate United Rentals a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for United Rentals has been 2.0 million shares per day over the past 30 days. United Rentals has a market cap of $5.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.50 and a short float of 9.6% with 4.65 days to cover. Shares are down 16% year-to-date as of the close of trading on Monday.
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Analysis:
rates United Rentals as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, 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, the net profit margin of 7.02% trails the industry average.
- URI, with its decline in revenue, slightly underperformed the industry average of 2.6%. 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.
- You can view the full United Rentals Ratings Report.
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