United Rentals URI shares soared 10.7% in the last trading session to close at $611.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.1% loss over the past four weeks.
Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, United Rentals shares soared, reflecting renewed investor optimism.
This equipment rental company is expected to post quarterly earnings of $8.92 per share in its upcoming report, which represents a year-over-year change of -2.5%. Revenues are expected to be $3.58 billion, up 2.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For United Rentals, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on URI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
United Rentals is a member of the Zacks Building Products - Miscellaneous industry. One other stock in the same industry, Aspen Aerogels (ASPN), finished the last trading session 9.8% higher at $5.51. ASPN has returned -32.4% over the past month.
Aspen Aerogels' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of -600%. Aspen Aerogels currently boasts a Zacks Rank of #3 (Hold).
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United Rentals, Inc. (URI): Free Stock Analysis Report Aspen Aerogels, Inc. (ASPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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