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United Rentals, Inc. (URI) stands as the foremost global provider of equipment rental solutions based in Stamford, Connecticut. With a market cap of $41.9 billion, the company serves construction, industrial, and municipal sectors globally.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and United Rentals fits this criterion perfectly. United Rentals is renowned for owning the world's largest rental fleet and maintaining a dominant presence across North America and key international markets, serving a wide range of industries with comprehensive equipment solutions.
However, the equipment rental company pulled back almost 14.3% from its 52-week high of $732.37, achieved in March. Over the past three months, shares of United Rentals have seen a more pronounced decline of 13.1%, in contrast to the broader S&P 500 Industrial Sector SPDR’s (XLI) drop of 3.2% during the same timeframe.
Nevertheless, over the longer term, URI stock is up 9.2% on a YTD basis, overshadowing XLI’s 6.9% gains. Moreover, shares of United Rentals have gained 47.9% over the past 52 weeks, compared to XLI’s 15.6% gains over the same time frame.
Since November last year, URI has maintained a position consistently above its 200-day moving average. Plus, the stock has mostly stayed above its 50-day moving average during this period despite some recent fluctuations, signaling a bullish trend.
URI has outperformed primarily due to its strong market positioning in construction equipment rentals despite industry headwinds. Moreover, the stock rose 5.5% following its Q1 earnings result on Apr. 24 due to the company surpassing analysts' profit and revenue expectations, driven by strong equipment demand. In addition, the company raised its 2024 revenue forecast to reflect the expected contribution from the acquisition of Yak.
To emphasize the stock’s outperformance, URI surged ahead of its rival Ryder System, Inc. (R), which has gained 47.3% over the past 52 weeks and a 6.9% rise on a YTD basis.
Despite the stock’s impressive price action, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and the mean price target of $648.94 suggests a premium of only 3% to current levels.
On the date of publication, Sohini Mondal 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.
