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If You Invested $1000 in United Rentals a Decade Ago, This is How Much It'd Be Worth Now
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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.
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 1,390 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.
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.
According to our calculations, a $1000 investment made in October 2012 would be worth $7,378.95, or a gain of 637.90%, as of October 24, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 161.85% and the price of gold went up -6.50% over the same time frame.
Going forward, analysts are expecting more upside for URI.
Shares of United Rentals have outperformed the industry so far this year. The company is benefiting from the U.S. administration’s increased focus on infrastructural improvement. This leading equipment rental company has been gaining from better fleet productivity on broad-based rental demand in construction and industrial verticals. Better fleet productivity on broad-based rental demand in non-residential construction and industrial verticals, higher total and rental revenues and stronger pricing aided the company’s second-quarter 2022 results. During the period, rental revenues grew 26.2% from a year ago. Adjusted gross margin expanded 360 basis points (bps). However, unprecedented supply-chain disruptions continues to be a headwind.
Shares have gained 8.09% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in United Rentals a Decade Ago, This is How Much It'd Be Worth Now
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.
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 1,390 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.
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.
According to our calculations, a $1000 investment made in October 2012 would be worth $7,378.95, or a gain of 637.90%, as of October 24, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 161.85% and the price of gold went up -6.50% over the same time frame.
Going forward, analysts are expecting more upside for URI.
Shares of United Rentals have outperformed the industry so far this year. The company is benefiting from the U.S. administration’s increased focus on infrastructural improvement. This leading equipment rental company has been gaining from better fleet productivity on broad-based rental demand in construction and industrial verticals. Better fleet productivity on broad-based rental demand in non-residential construction and industrial verticals, higher total and rental revenues and stronger pricing aided the company’s second-quarter 2022 results. During the period, rental revenues grew 26.2% from a year ago. Adjusted gross margin expanded 360 basis points (bps). However, unprecedented supply-chain disruptions continues to be a headwind.
Shares have gained 8.09% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.