United Rentals
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About United Rentals (URI-N)
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It should be a great stage in the cycle for them. They rent out large building machinery. The recent move down is digesting some recent purchases. Take a position here, but they carry a lot of debt too. Edge in a bit.
It should be a great stage in the cycle for them. They rent out large building machinery. The recent move down is digesting some recent purchases. Take a position here, but they carry a lot of debt too. Edge in a bit.
The largest big-machinery rental company in the world. Trading at less than 10x earnings. They benefit from an infrastucture tailwind. Meanwhile, rental rates are rising. (Analysts' price target $195.93)
The largest big-machinery rental company in the world. Trading at less than 10x earnings. They benefit from an infrastucture tailwind. Meanwhile, rental rates are rising. (Analysts' price target $195.93)
People like to rent and not buy equipment. Use a $168 stop loss.
People like to rent and not buy equipment. Use a $168 stop loss.
This is a play on the US economy. Companies do not like to buy heavy equipment, they like to rent it as it is much more efficient. When the economy gets better, the capacity tightens up and prices go up. They are now seeing rising prices for their rentals for the first time in a few years. When that begins, it tends to go on for a long time. It’s a cyclical business, but if we think companies are much more optimistic than they were 18 months ago, then they are going to start to build and are going to use equipment from this company. The company generates a lot of cash. (Analysts' price target is $194.87.)
This is a play on the US economy. Companies do not like to buy heavy equipment, they like to rent it as it is much more efficient. When the economy gets better, the capacity tightens up and prices go up. They are now seeing rising prices for their rentals for the first time in a few years. When that begins, it tends to go on for a long time. It’s a cyclical business, but if we think companies are much more optimistic than they were 18 months ago, then they are going to start to build and are going to use equipment from this company. The company generates a lot of cash. (Analysts' price target is $194.87.)
(A Top Pick Jan 26/17. Up 43.34%.) Heavy equipment rental. This is a beneficiary of a good economy, and the belief that we are going to see infrastructure expansion.
(A Top Pick Jan 26/17. Up 43.34%.) Heavy equipment rental. This is a beneficiary of a good economy, and the belief that we are going to see infrastructure expansion.
This has done extremely well. They expanded their portfolio of big equipment at the cusp of an infrastructure spend. The one thing he would caution on is that they are a fairly high beta stock, so you are going to see a fair bit of volatility. Also has a fairly levered balance sheet.
This has done extremely well. They expanded their portfolio of big equipment at the cusp of an infrastructure spend. The one thing he would caution on is that they are a fairly high beta stock, so you are going to see a fair bit of volatility. Also has a fairly levered balance sheet.
He wants to own things that benefit from corporate and business optimism. Feels capital spending will be a significant theme and industrials will play a part. This company has 2 main businesses, they rent equipment and machinery to industrial companies, and they rent construction equipment to non-residential construction companies. This is a prime beneficiary very of a stronger US economy. It has a relatively high tax rate, so they benefit from the tax plan. They also benefit from the theme that companies don't necessarily want to spend all the money on their equipment, they want to pay for it on an ongoing basis. (Analysts' price target is $160.)
He wants to own things that benefit from corporate and business optimism. Feels capital spending will be a significant theme and industrials will play a part. This company has 2 main businesses, they rent equipment and machinery to industrial companies, and they rent construction equipment to non-residential construction companies. This is a prime beneficiary very of a stronger US economy. It has a relatively high tax rate, so they benefit from the tax plan. They also benefit from the theme that companies don't necessarily want to spend all the money on their equipment, they want to pay for it on an ongoing basis. (Analysts' price target is $160.)
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