Stock of the Day

United Rentals (URI)

$706.66

+$7.48 (+1.1%)

Market Cap: $45.94B

About United Rentals

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.

The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

United Rentals Bull Case

Here are some ways that investors could benefit from investing in United Rentals, Inc.:

• The current stock price is around $708, reflecting a strong market position and investor interest.
• United Rentals, Inc. reported a revenue increase of 6.7% compared to the same quarter last year, indicating robust business growth.
• The company has a solid net margin of 16.78%, showcasing its efficiency in converting revenue into profit.
• With a return on equity of 34.21%, United Rentals, Inc. demonstrates effective management of shareholder equity to generate profits.
• The recent quarterly dividend of $1.79, with an annualized yield of 1.02%, provides a steady income stream for investors.

United Rentals Bear Case

Investors should be bearish about investing in United Rentals, Inc. for these reasons:

• The stock has experienced fluctuations, with a recent trading down of about 0.9%, which may indicate volatility.
• Insider selling activity, including significant sales by executives, could signal a lack of confidence in the company's short-term prospects.
• Despite revenue growth, the company missed earnings expectations by $0.06, which may raise concerns about future performance.
• With 96.26% of the stock owned by institutional investors, there may be limited room for retail investors to influence the stock price.
• The dividend payout ratio is 18.54%, which, while sustainable, may limit the potential for future dividend increases.

Recent News

• United Rentals: A Wonderful Company At A Fair Price (seekingalpha.com)
• Industrial distributors face pressure with drop in construction spending (msn.com)
• 2 Reasons to Like URI and 1 to Stay Skeptical (msn.com)