Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

United Rentals (URI-N) is a quality company that has suffered recession worries but has recovered due to a strong economy. It is economically sensitive and heavily reliant on government spending, which is expected to increase with various bills supporting the economy. The company has a low multiple and high growth rates, making it a solid investment. URI has also initiated its first dividend and has a positive 2023 outlook, with brokers raising target prices.

Consensus
Positive
Valuation
Undervalued
PAST TOP PICK
United Rentals
(A Top Pick Jan 11/23, Up 72%)

Now at 15x earnings, still 20% discount to market. When a stock price rises, ideally you want the multiple to stay the same. It would mean organic growth matches price appreciation, both moving forward at the same time. With a dramatic move in price, ask yourself if you still want to hold? 

Economically sensitive. Be careful. Don't want to own it into a recession. Deep recession would hurt. Market seems on solid economic ground, so he's holding. If it gets too big in the portfolio, he'll trim. Still likes it. 

Look at the background. Companies like this live on government spending. US government's passing all kinds of bills to support the economy, like CHIPS and Infrastructure, to the tune of $2T. URI will get a big piece of this money.

Financial Services
BUY
United Rentals

Quality company. Suffered a while ago due to worries of recession. Cyclical, as people only rent when they have a lot of confidence in projects. Recovered because people are seeing the end of the hiking cycle, economy continues to be strong. Low multiple with high growth rates, a great combination.

Financial Services
BUY
United Rentals
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

URI had a better-than-expected 2023 outlook and started its first dividend. Brokers have raised target prices. 
There have been some recessionary and demand concerns, and the sector has been very weak in the past two weeks, but at 8X earnings things look fine to us here. 
Outlook is supported by strong demand due to significant federal spending programs and large industrial projects. 
Amid slowing economic growth, URI is poised to sustain double-digit gains in 2023. 
Annual 2022 equipment revenue expansion of 23% was the highest in the past decade. 
In the quarter, General Rental gains of 19% outpaced Specialty's 18%, as large rental companies continue to significantly outperform the market. Adjusted Ebitda margin in 4Q expanded 280 bps to 50%, highest since 3Q18. 
Ample free cash flow supports a long-awaited dividend and share buybacks for a total 2023 outlay of $1.4 billion. 
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Financial Services
STRONG BUY
United Rentals

Traded off on recession worries, where projects on the books would be deferred, but this is temporary. Solid investment, less than 9x earnings, inexpensive. Consistent grower. Initiated first-ever dividend, shows confidence in future cashflow.

Financial Services
HOLD
United Rentals

Initiated a dividend, and the chart shows that the market likes this. A very worthwhile hold.

Financial Services
TOP PICK
United Rentals
High beta name. 10x earnings. 10% free cashflow yield. Chance to take advantage of infrastructure spend in the US. Regardless of recession status, money to be spent on infrastructure and there's safety in that. Recent acquisition will be accretive from the get-go. Good long-term hold. No dividend. (Analysts’ price target is $410.18)
Financial Services
PAST TOP PICK
United Rentals
(A Top Pick Oct 19/21, Down 17%) Economically sensitive, infrastructure. Inexpensive, 9x earnings. Free cashflow 10%. Great company, growing wonderfully. High beta, volatile. Stick with it, because over time it will take you to good places.
Financial Services
HOLD
United Rentals
They will benefit a lot from government infrastructure spending. If you own, hang on.
Financial Services
DON'T BUY
United Rentals
She sold URI. Held it for a long time and it did well for her. As supply chains ease, the rental market will decline as people buy more.
Financial Services
TOP PICK
United Rentals
The U.S. trillion-dollar infrastructure bill will pass and benefit URI. He's done very well with this. He predicts earnings of $25/share this quarter. The stock is not expensive, yet offers a lot of growth. (Analysts’ price target is $384.07)
Financial Services
PAST TOP PICK
United Rentals
(A Top Pick Aug 27/20, Up 91%) Earning about $21.50 EPS this year, $25 predicted next year. He expects low teens percentage earnings increases for the next 5 years. Great value at 15x earnings with great growth prospects. Infrastructure bill is in their bailiwick.
Financial Services
RISKY
United Rentals

vs. Caterpillar They're both cyclicals. He owns only URI. CAT stock is a little ahead of itself at 25-30x this year's earnings. URI is trading at a lower level. URI will still do well if a US infrastructure bill will be passed. Yes, it's lumpy and volatile, so strategically limit your exposure to this in your portfolio. Diversify away from higher-beta, riskier stocks.

Financial Services
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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
United Rentals
Why buy when you can rent, or buy second-hand? URI is the world's biggest heavy-equipment rental company, and business is good. In 2020, the year of the lockdown, the company spent US$961 million in buying equipment. This year, it will more than double that number. Last week, the company beat its Q1 earnings and bumped up its 2021 forecast. EPS came in at $3.45 vs. the street's $3.10. Total revenues beat by 2.4%, but were down 3.2% year-over-year. Used equipment sales topped US$267 million compared to US$208 million a year ago. The balance sheet is sound at US$3.745 billion of total liquidity, which marks a US$672 million increase YOY. Free cash flow jumped 19.6% to US$725 million. Guidance rose as much as US$9.025 billion in total 2021 revenue to a range of US$9.05-9.45 billion. No, URI doesn't offer a dividend, but it is paying down debt and boasts good cash flow. The stock has moved up 38% this year, but will likely continue to climb with the entire infrastructure complex.
Financial Services
BUY
United Rentals
Largest rental of heavy equipment. Has moved dramatically. Continues to like it. Good value, at 10x earnings. Great cash flow. Paying off debt. With Biden, we might get an infrastructure bill with teeth, and that would benefit URI.
Financial Services
PAST TOP PICK
United Rentals
(A Top Pick Sep 18/19, Up 43%) Low multiple. Strong free cash flow, around 12%. The US needs to spend money on its infrastructure. We may hear about it during the election, and this would benefit the company directly.
Financial Services
Showing 1 to 15 of 44 entries

United Rentals(URI-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for United Rentals is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

United Rentals(URI-N) Frequently Asked Questions

What is United Rentals stock symbol?

United Rentals is a American stock, trading under the symbol URI-N on the New York Stock Exchange (URI). It is usually referred to as NYSE:URI or URI-N

Is United Rentals a buy or a sell?

In the last year, 5 stock analysts published opinions about URI-N. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for United Rentals.

Is United Rentals a good investment or a top pick?

United Rentals was recommended as a Top Pick by on . Read the latest stock experts ratings for United Rentals.

Why is United Rentals stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is United Rentals worth watching?

5 stock analysts on Stockchase covered United Rentals In the last year. It is a trending stock that is worth watching.

What is United Rentals stock price?

On 2024-02-28, United Rentals (URI-N) stock closed at a price of $685.58.