Is United Rentals (URI) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
United Rentals (URI) is a stock many investors are watching right now. URI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.25 right now. For comparison, its industry sports an average P/E of 17.45. Over the past year, URI's Forward P/E has been as high as 17.45 and as low as 12.29, with a median of 14.66.
We also note that URI holds a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. URI's PEG compares to its industry's average PEG of 1.02. Within the past year, URI's PEG has been as high as 2.35 and as low as 0.68, with a median of 1.03.
Finally, our model also underscores that URI has a P/CF ratio of 7.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.70. Within the past 12 months, URI's P/CF has been as high as 9.09 and as low as 5.77, with a median of 8.10.
Value investors will likely look at more than just these metrics, but the above data helps show that United Rentals is likely undervalued currently. And when considering the strength of its earnings outlook, URI sticks out at as one of the market's strongest value stocks.
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United Rentals, Inc. (URI): Free Stock Analysis Report
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