Trade-Ideas LLC identified

United Rentals

(

URI

) 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 $175.6 million.
  • URI has traded 325,833 shares today.
  • URI is trading at 2.41 times the normal volume for the stock at this time of day.
  • URI is trading at a new high 3.07% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in URI with the Ticky from Trade-Ideas. See the FREE profile for URI NOW at Trade-Ideas

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 Safety, Power and HVAC (heating, ventilating and air conditioning), and Pump Solutions. URI has a PE ratio of 9. Currently there are 8 analysts that rate United Rentals a buy, 1 analyst rates it a sell, and 5 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 $5.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.02 and a short float of 11.1% with 2.70 days to cover. Shares are down 37.2% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates United Rentals as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Trading Companies & Distributors industry and the overall market, UNITED RENTALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $438.00 million or 30.74% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.47%.
  • UNITED RENTALS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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 ($8.17 versus $6.10).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.0%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for UNITED RENTALS INC is rather high; currently it is at 59.75%. 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 11.09% compares favorably to the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.