United Rentals (URI): Assessing Valuation After Recent Share Price Pullback

United Rentals (URI) stock is drawing attention after its latest share price movements, with investors sizing up what recent performance says about broader trends in the equipment rental space. Shares have shown mixed returns over the past month.

See our latest analysis for United Rentals.

After a strong run earlier this year, United Rentals’ share price has pulled back in recent weeks, reflecting some changing sentiment after a long stretch of gains. Despite the recent dip, the company’s 26.3% year-to-date share price return combined with a 10.8% one-year total shareholder return suggests that momentum, while cooling from its peak, remains solid for longer-term holders.

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With shares recently pulling back and still trading below analyst targets, investors are left to weigh whether United Rentals is currently undervalued, or if its impressive growth prospects are already fully reflected in the price. Is this a buying opportunity, or is the market ahead in pricing in future gains?

Most Popular Narrative: 12.9% Undervalued

United Rentals last closed at $871.18, while the most widely followed narrative places its fair value at $1,000.68. This sets up a notable valuation gap and draws focus to the underlying drivers analysts believe could propel shares higher.

The company is expanding its Specialty business through new cold starts, which grew 22% year-over-year and 15% pro forma. This growth is anticipated to positively impact both revenue and net margins as the business becomes a larger share of total sales.

Read the complete narrative.

Want to know what’s fueling the optimism? There is a bold set of assumptions about future revenues, profit margins, and earnings per share baked into this view. Which exact projections have analysts betting on a higher price? See what’s driving their math behind the scenes.

Result: Fair Value of $1,000.68 (UNDERVALUED)

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

However, there is still the risk that large project slowdowns or rising equipment costs could weigh on United Rentals’ growth story in the future.

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 numbers firsthand, you can shape your own perspective in just minutes. Do it your way

A great starting point for your United Rentals research is our analysis highlighting 3 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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