United Rentals, Inc. (URI Quick QuoteURI - Free Report) is well-poised for growth, given persistent growth opportunities for non-residential and industrial verticals. The company is benefiting from the U.S. administration’s increased focus on infrastructural improvement.

United Rentals has been witnessing widespread growth in rental revenues. Even its new upbeat 2022 guidance exhibits broad-based growth across its verticals, with constant growth opportunities for non-residential and industrial verticals. In terms of project types, large data centers, infrastructure projects, distribution centers and manufacturing holds promise.

Let’s take a look at the factors supporting the growth.

Upbeat View: Backed by solid first-half 2022 results and the recently completed acquisitions, the company lifted its 2022 guidance to reflect stronger growth in the core rental business and improve the used equipment business. The optimism was supported by positive customer sentiments, used equipment demand and ongoing share growth opportunities for certain non-residential verticals, including power, healthcare, distribution and technology.

For 2022, United Rentals expects higher demand across the end markets served, with 18.9% year-over-year growth at the midpoint of the guided revenue range. This will be supported by a significant investment in growth capital.

Higher End-Market Demand: United Rentals has been witnessing widespread growth in rental revenues. Precisely, during the second quarter, rental revenue grew 26.2%. Rental revenues from non-residential construction verticals were up 27% year over year, and the same from infrastructure was up 15%.

With the power vertical accelerating and funding has now been finalized in Washington, the company expects to start registering benefits for 2023 and beyond.

Further, used equipment continues to be strong, supported by better pricing and a higher percentage of fleet sold through its most profitable retail channel. The strength of the used equipment market is a key indicator of the rental industry’s performance.

Higher Infrastructural Spending: United Rentals and other construction companies, like Dycom Industries, Inc. (DY Quick QuoteDY - Free Report) , Quanta Services, Inc. (PWR Quick QuotePWR - Free Report) and Sterling Infrastructure, Inc. (STRL Quick QuoteSTRL - Free Report) , are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security, and a potential super-cycle in global supply chain investments. Notably, United Rentals is expected to maintain positive momentum in the near term as the company’s solutions are closely aligned with President Biden’s policies and industry trends.

The need to rebuild the nation’s deteriorating roads and bridges and fund new climate-resilient and broadband initiatives is expected to aid URI. The company expects a diverse mix of federal projects for road and bridge work, water control, harbors and ports and the power grid, which will drive growth in 2023.

A Brief Discussion on the Above-Mentioned Stocks

Dycom Industries is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. Dycom expects considerable opportunities across a broad array of customers.

Quanta Services remains uniquely positioned to capitalize on megatrends and opportunities to lead the energy transition and enable technological development, with initiatives such as electric vehicle charging infrastructure and undergrounding of electrical infrastructure gaining momentum. More demand for infrastructure solutions that help support customers' energy-transition initiatives and modernization will continue to provide multi-year growth opportunities for Quanta.

Sterling Infrastructure has been benefiting from broad-based growth across the e-infrastructure, building and transportation solutions segments.