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Valued at $56.4 billion by market cap, United Rentals, Inc. (URI) is the world’s largest equipment rental provider. The Stamford, Connecticut-based company operates a vast network of 1,666 rental locations across North America, Europe, Australia, and New Zealand, catering to a diverse customer base, including construction and industrial firms, utilities, municipalities, and homeowners.
Companies worth $10 billion or more are generally described as "large-cap stocks," United Rentals fits this bill perfectly. United Rentals (URI) stands out as the largest equipment rental company globally, leveraging its vast network of 1,666 locations across multiple continents. Its scale provides a cost advantage, while a diverse fleet and strong industry relationships ensure steady demand from construction, industrial, and government clients.
United Rentals touched its all-time high of $896.98 on Nov. 11 and is currently trading 33% below that peak. URI stock prices have dropped 24.6% over the past three months, compared to broader Nasdaq Composite’s ($NASX) fall of 13% over the same time frame.
URI has slipped 15% over the past six months and 9.6% over the past year, trailing SPX’s marginal gains over the past six months and 8.8% returns over the past year.
URI shares have been trading below both its 50-day and 200-day moving averages since last month, reinforcing a bearish trend.
On Jan. 29, United Rentals shares declined over 1% following its Q4 earnings release. The company posted adjusted EPS of $11.59, falling short of Wall Street’s estimate of $11.77, while revenue came in at $4.1 billion, surpassing the forecasted $3.9 billion. Looking ahead, URI projects full-year revenue in the range of $15.6 billion to $16.1 billion.
United Rentals has underperformed its competitor, H&E Equipment Services, Inc. (HEES), by a large margin. HEES stock gained 122.3% over the past three months and 65.4% over the past year.
Among the 19 analysts covering the URI stock, the consensus rating is a “Moderate Buy.” Its mean price target of $823.12 indicates a potential upside of 37% from the current market prices.
On the date of publication, Kritika Sarmah 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.
