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United Rentals, Inc. (URI) is the largest equipment rental company in the world, with an integrated network of rental locations in the U.S., Canada, and Europe. With a market cap of $47 billion, United Rentals operates through General Rentals and Specialty segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," United Rentals fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the rental & leasing services industry. It serves various construction and industrial companies, utilities, government agencies, contractors, etc.
The equipment rental firm touched its all-time of $789.80 on Jul. 26 and is currently trading 10.6% below that peak. URI has gained 12.5% over the past three months, outpacing the Industrial Select Sector SPDR Fund’s (XLI) 5.1% gains during the same time frame.
Over the longer term, URI stock looks even more appealing. URI has surged 54% over the past 52 weeks and 23.2% in 2024, outperforming XLI’s 21.4% gains over the past year and 12.5% returns on a YTD basis
To confirm the bullish trend, United Rentals has mostly traded above its 50-day and 200-day moving averages over the past year with some fluctuations.
Shares of United Rentals surged 5.4% following the release of its Q2 earnings on Jul. 24. The company reported strong Q2 results, with adjusted net income of $10.70 per share and revenue of nearly $3.8 billion, driven by strong demand from commercial construction and manufacturers. Additionally, higher rental rates and increased infrastructure projects supported the earnings growth, boosting investor confidence.
United Rentals’ rival H&E Equipment Services, Inc. (HEES) has significantly underperformed compared to URI, with HEES seeing a 2.8% dip over the past year and a sharper 19.3% decline in 2024.
Despite the stock's impressive gains, analysts are cautious about its prospects. Among the 18 analysts covering the URI stock, the consensus rating is a “Hold.” URI is currently trading above its mean price target of $682.62.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
