United Rentals Inc (URI): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

United Rentals ( URI) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.5%. By the end of trading, United Rentals rose $1.36 (4.2%) to $33.44 on average volume. Throughout the day, 3.6 million shares of United Rentals exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in a price between $32.26-$33.63 after having opened the day at $32.31 as compared to the previous trading day's close of $32.08. Other companies within the Diversified Services industry that increased today were: National American University Holdings ( NAUH), up 11.5%, Swisher Hygiene ( SWSH), up 10.2%, Willdan Group ( WLDN), up 8.4%, and Oxygen Biotherapeutics ( OXBT), up 7.7%.
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United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. United Rentals has a market cap of $3.01 billion and is part of the services sector. The company has a P/E ratio of 43.3, above the average diversified services industry P/E ratio of 38.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 8.6% year to date as of the close of trading on Friday. Currently there are eight analysts that rate United Rentals a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates United Rentals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.

On the negative front, Scientific Learning Corporation ( SCIL), down 9.7%, China Yida ( CNYD), down 9.3%, China Distance Education Holdings ( DL), down 6.7%, and Luna Innovations ( LUNA), down 6.3%, were all laggards within the diversified services industry with Apollo Group ( APOL) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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