United Rentals currently trades at $857.73 and has been a dream stock for shareholders. It’s returned 373% since August 2020, blowing past the S&P 500’s 89.8% gain. The company has also beaten the index over the past six months as its stock price is up 14.8% thanks to its solid quarterly results.
Is now still a good time to buy URI? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Does URI Stock Spark Debate?
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Two Positive Attributes:
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, United Rentals’s 11.8% annualized revenue growth over the last five years was impressive. Its growth beat the average industrials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
United Rentals’s EPS grew at an astounding 18.1% compounded annual growth rate over the last five years, higher than its 11.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

One Reason to be Careful:
Slow Organic Growth Suggests Waning Demand In Core Business
We can better understand Specialty Equipment Distributors companies by analyzing their organic revenue. This metric gives visibility into United Rentals’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, United Rentals’s organic revenue averaged 6.6% year-on-year growth. This performance slightly lagged the sector and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations.
Final Judgment
United Rentals’s merits more than compensate for its flaws, and with its shares topping the market in recent months, the stock trades at 19.3× forward P/E (or $857.73 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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