For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in United Rentals (URI - Free Report) ten years ago? It may not have been easy to hold on to URI for all that time, but if you did, how much would your investment be worth today?
United Rentals' Business In-Depth
With that in mind, let's take a look at United Rentals' main business drivers.
Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,557 rental locations in the United States, Canada, Europe, Australia and New Zealand. Moreover, it operates in 49 U.S. states and every Canadian province. The company offers 4,800 classes of equipment for rent at a total original equipment cost (“OEC”) of $21 billion (as of Sep 30, 2023). Equipment rentals represented 84% of total revenues for the nine months ended Sep 30, 2023.
The company’s customer base includes construction and industrial companies, utilities, municipalities, government agencies, independent contractors and homeowners and other individuals that use equipment for projects that range from simple repairs to major renovations. The company’s principal products and services are equipment rental, sale of rental equipment, new equipment, contractor supplies, services and other.
United Rentals serves customers as a single-source solution, provided through two business segments: General Rentals and Specialty or Trench, Power and Fluid Solutions.
General Rentals (accounted for 73.7% of total revenues in 2022) includes the rental of construction, aerial and industrial equipment, general tools and light equipment, along with related services and activities. The segment includes the rental of the following: i) general construction and industrial equipment ii) aerial work platforms and iii) general tools and light equipment. The general rentals segment is comprised of four geographic divisions - Central, Northeast, Southeast and West - and operates throughout the United States and Canada.
Specialty (26.3%) includes the rental of specialty construction products and related services like trench safety equipment, power and HVAC equipment, and fluid solutions equipment.
On Jan 25, 2023, the company unveiled a dividend program wherein the board of directors approved a quarterly dividend of $1.48 per share.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in United Rentals a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $7,427.55, or a 642.75% gain, as of December 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 159.35% and the price of gold increased 63.88% over the same time frame in comparison.
Analysts are anticipating more upside for URI.
Shares of United Rentals have outperformed the industry over the past six months. The company is benefiting from sustained demand in its end markets and the strength of its core rental business. Its third quarter 2023 earnings and revenues grew 26.5% and 23.4%, respectively, driven by higher rental revenues (up 18%), owing to the broad-based recovery of activity across end markets served by the company. In 2023, URI expects to deliver another profitable year, strong cash flow, and attractive returns for shareholders backed by substantial opportunities across various federally funded projects. The company sees multi-year tailwinds across infrastructure, manufacturing, and energy and power. Earnings estimates for 2023 have increased in the past 30 days. However, volatile oil & natural gas prices and intense competition are risks.
Shares have gained 22.90% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in United Rentals (URI - Free Report) ten years ago? It may not have been easy to hold on to URI for all that time, but if you did, how much would your investment be worth today?
United Rentals' Business In-Depth
With that in mind, let's take a look at United Rentals' main business drivers.
Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,557 rental locations in the United States, Canada, Europe, Australia and New Zealand. Moreover, it operates in 49 U.S. states and every Canadian province. The company offers 4,800 classes of equipment for rent at a total original equipment cost (“OEC”) of $21 billion (as of Sep 30, 2023). Equipment rentals represented 84% of total revenues for the nine months ended Sep 30, 2023.
The company’s customer base includes construction and industrial companies, utilities, municipalities, government agencies, independent contractors and homeowners and other individuals that use equipment for projects that range from simple repairs to major renovations. The company’s principal products and services are equipment rental, sale of rental equipment, new equipment, contractor supplies, services and other.
United Rentals serves customers as a single-source solution, provided through two business segments: General Rentals and Specialty or Trench, Power and Fluid Solutions.
General Rentals (accounted for 73.7% of total revenues in 2022) includes the rental of construction, aerial and industrial equipment, general tools and light equipment, along with related services and activities. The segment includes the rental of the following: i) general construction and industrial equipment ii) aerial work platforms and iii) general tools and light equipment. The general rentals segment is comprised of four geographic divisions - Central, Northeast, Southeast and West - and operates throughout the United States and Canada.
Specialty (26.3%) includes the rental of specialty construction products and related services like trench safety equipment, power and HVAC equipment, and fluid solutions equipment.
On Jan 25, 2023, the company unveiled a dividend program wherein the board of directors approved a quarterly dividend of $1.48 per share.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in United Rentals a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $7,427.55, or a 642.75% gain, as of December 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 159.35% and the price of gold increased 63.88% over the same time frame in comparison.
Analysts are anticipating more upside for URI.
Shares of United Rentals have outperformed the industry over the past six months. The company is benefiting from sustained demand in its end markets and the strength of its core rental business. Its third quarter 2023 earnings and revenues grew 26.5% and 23.4%, respectively, driven by higher rental revenues (up 18%), owing to the broad-based recovery of activity across end markets served by the company. In 2023, URI expects to deliver another profitable year, strong cash flow, and attractive returns for shareholders backed by substantial opportunities across various federally funded projects. The company sees multi-year tailwinds across infrastructure, manufacturing, and energy and power. Earnings estimates for 2023 have increased in the past 30 days. However, volatile oil & natural gas prices and intense competition are risks.
Shares have gained 22.90% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Get the latest research report on URI - FREE