A Look at United Rentals’s Valuation After Record Results, Raised Outlook, and $2B Buyback Announcement

United Rentals (URI) just posted record third-quarter revenue and adjusted EBITDA, as demand from construction and industrial customers remained strong. The company also boosted its full-year financial outlook and announced an expanded $2 billion buyback.

See our latest analysis for United Rentals.

United Rentals’ latest strong quarter comes after a year of generally positive momentum. While the stock’s recent 1-month share price return of -11.2% signals short-term caution, its 2025 rally remains intact, showing a 17.6% year-to-date share price gain. Over the long haul, however, total shareholder return for the past year is down 5.3%, even as three- and five-year figures remain impressive. This serves as a reminder of both the company’s resilience and the sector’s shifting dynamics.

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With record-setting results and a sizable buyback, is United Rentals now trading at a discount to its future potential? Or have the markets already priced in all the good news that lies ahead?

Most Popular Narrative: 21% Undervalued

United Rentals’ current price is below the most widely followed narrative’s fair value estimate, signaling a potentially overlooked opportunity despite recent momentum and buybacks.

United Rentals is driving revenue growth through operational excellence, innovation, Specialty business expansion, and strategic cross-selling. A robust share repurchase program and healthy market demand are poised to bolster EPS and profitability.

Read the complete narrative.

What exactly powers this undervalued call? The answer hinges on optimistic projections for future sales, rising margins, and a profit trajectory rarely seen in the sector. Discover how these bold analyst assumptions build up to a price target that might surprise even seasoned investors.

Result: Fair Value of $1,027 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued margin compression and potential slowdowns in large project spending could present challenges to the upside case for United Rentals in the coming quarters.

Find out about the key risks to this United Rentals narrative.

Build Your Own United Rentals Narrative

If you see the story differently or want to dig into the data yourself, you can build your own narrative in just a few minutes, so why not Do it your way

A great starting point for your United Rentals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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