United Rentals, Inc. (URI) is the largest equipment rental company in the world, with an integrated network of rental locations in the U.S., Canada and Europe. With a market cap of $56.2 billion, United Rentals operates through General Rentals and Specialty segments.
United Rental has substantially outpaced the broader market over the past year. URI stock has soared 49.5% in 2024 and 84.6% over the past 52-week period outperforming the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 31.8% returns over the past year.
Narrowing the focus, URI has also outpaced the Industrial Select Sector SPDR Fund’s (XLI) surge of 25.6% in 2024 and 35.4% over the past 52 weeks.
URI stock prices fell 1.1% in the trading session after the release of its Q3 earnings on Oct. 23 as the company’s earnings fell below Wall Street’s expectations. Its adjusted EPS grew by a modest 60 basis points compared to the year-ago quarter to $11.80, which missed analysts’ estimates by a notable 5.5% and unsettled investors' confidence.
Nevertheless, United Rentals' overall performance has remained resilient and reflected continued growth across both its construction and industrial end-markets, achieving record third-quarter results. The company reported over 6% year-over-year growth in total revenue, reaching approximately $4 billion, driven by the impressive 7.4% year-over-year growth in equipment rental revenue, totaling $3.5 billion.
For the current fiscal year, ending in December, analysts expect URI to report a 6.7% year-over-year growth in adjusted EPS to $43.46. The company has a mixed earnings surprise history. It surpassed analysts’ bottom-line estimates in three of the past four quarters while missing on another occasion.
URI stock has a consensus “Moderate Buy” rating overall. Out of the 19 analysts covering the stock, eight recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and four advocate a “Strong Sell” rating.
This configuration is slightly more bullish than three months ago, when 18 analysts had a consensus “Hold” rating overall, among which seven analysts recommended a “Strong Buy” rating.
On Nov. 20, Argus Research analyst John Eade maintained a “Buy” rating and raised the price target to $880, indicating a 2.7% potential upside from current price levels.
As of writing, URI is trading above its mean price target of $832.67. Meanwhile, the Street-high target of $1004 represents a 17.2% premium to current price levels.
On the date of publication, Aditya Sarawgi 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. More news from Barchart- Elon Musk Says Negative Feedback is Powerful, 'Hardly Anyone Does That, and It’s Incredibly Helpful'
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