How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in United Rentals (
URI Quick Quote 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 1,390 rental locations in United States, Canada and Europe. Moreover, it operates in 49 states and every Canadian province. The company offers 4,400 classes of equipment for rent at a total original equipment cost (“OEC”) of $16.6 billion (as of June 2022).
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 75.7% of total revenues in 2021) 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 caters to 11 geographic regions — Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast and Western Canada — and operates throughout the United States and Canada.
Specialty (24.3%) includes the rental of specialty construction products and related services like trench safety equipment, power and HVAC equipment, and fluid solutions equipment.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in United Rentals ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $9,973.84, or a gain of 897.38%, as of August 17, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 204.14% and the price of gold increased 5.55% over the same time frame in comparison.
Analysts are anticipating more upside for URI.
United Rentals’ second-quarter 2022 earnings and revenues beat the respective Zacks Consensus Estimate by 19.6% and 2.8%, and improved 68.7% and 21.2% year over year. The results were driven by higher rental revenues (up 26.2%), fleet productivity (up 11.3%) and absorptions, mainly attributable to broad-based recovery of activity across end markets served by the company. Adjusted EBITDA margin expanded 360 basis points (bps), owing to higher margins from rental revenues and used equipment sales. Even its new upbeat 2022 guidance exhibits broad-based growth across its verticals, with persistent growth opportunities for non-residential and industrials verticals, including refining, metals and minerals and power projects. Shares of United Rentals have outperformed the industry year to date. However, unprecedented supply-chain disruptions are risks.
The stock is up 25.43% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.