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Here's How Much a $1000 Investment in United Rentals Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 - 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 1,543 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 $20.6 billion (as of Jun 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For United Rentals, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2013 would be worth $8,682.45, or a 768.24% gain, as of August 11, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 164.21% and gold's return of 40% over the same time frame.
Analysts are anticipating more upside for URI.
United Rentals reported impressive second-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate by 7% and 3.5%, respectively. Also, earnings and revenues grew year over year by 25.7% and 28.3%, respectively. The company is benefiting from solid consumer demand across all its business, strong core rental business and the prevailing favorable market condition. Backed by the aforementioned tailwinds, the company raised its 2023 outlook. Furthermore, in the quarter, the company opened 19 new cold-start locations and is on track of opening 40 specialty cold-starts by 2023. Although, high variable costs and intense competition are concerns, earnings estimates for 2023 have increased in the past 30 days, depicting analysts' optimism. Also, shares of URI have outperformed its industry in the past year.
The stock has jumped 5.21% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in United Rentals Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 - 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 1,543 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 $20.6 billion (as of Jun 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For United Rentals, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2013 would be worth $8,682.45, or a 768.24% gain, as of August 11, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 164.21% and gold's return of 40% over the same time frame.
Analysts are anticipating more upside for URI.
United Rentals reported impressive second-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate by 7% and 3.5%, respectively. Also, earnings and revenues grew year over year by 25.7% and 28.3%, respectively. The company is benefiting from solid consumer demand across all its business, strong core rental business and the prevailing favorable market condition. Backed by the aforementioned tailwinds, the company raised its 2023 outlook. Furthermore, in the quarter, the company opened 19 new cold-start locations and is on track of opening 40 specialty cold-starts by 2023. Although, high variable costs and intense competition are concerns, earnings estimates for 2023 have increased in the past 30 days, depicting analysts' optimism. Also, shares of URI have outperformed its industry in the past year.
The stock has jumped 5.21% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023; the consensus estimate has moved up as well.