/United%20Rentals%2C%20Inc_%20logo%20magnified-by%20Casimiro%20PT%20via%20Shutterstock.jpg)
United Rentals, Inc. (URI) is an equipment rental company based in Stamford, Connecticut. With a market cap of $48.5 billion, the company provides equipment and tool classes for industrial & construction sites, including general construction and industrial equipment, electrical distribution equipment, trench safety equipment, and repair and maintenance services.
Shares of this rental company have significantly outperformed the broader market over the past 52 weeks. URI has soared 54.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 25%. In 2024, shares of URI are up 27.9%, compared to SPX’s 17.9% gain on a YTD basis.
Zooming in further, URI’s outperformance is also evident when compared to the Invesco Dorsey Wright Industrials Momentum ETF’s (PRN) 34.8% gain over the past 52 weeks and 21.7% returns on a YTD basis.
Shares of URI gained 5.4% following its better-than-expected Q2 earnings release on Jul. 24. Adjusted earnings of $10.70 per share beat analysts’ estimate of $10.48 per share, and revenues of $3.77 billion were in line with the consensus estimate. The company expects full-year revenue between $15.05 billion and $15.35 billion.
For the current fiscal year, ending in December, analysts expect URI’s EPS to grow nearly 9% year over year to $44.40.The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and four “Strong Sells.”
The configuration is more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Jul. 29, Citi maintained a “Buy” rating on United Rentals and raised the price target to $860, which implies a potential upside of 17.5% from the current price levels.
The company is trading above its mean price target. The Street-high price target of $905 implies a potential upside of 23.6% from the current price.
On the date of publication, Rashmi Kumari 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.
