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

United Rentals (URI) has been drifting lower over the past few months even as its underlying business continues to grow, creating an interesting disconnect between recent share performance and the company’s fundamentals.

See our latest analysis for United Rentals.

At around $813.66 per share, the stock has pulled back meaningfully in recent months. However, the double digit year to date share price return and strong multi year total shareholder returns suggest that long term momentum and confidence remain intact.

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With shares down from their highs but still boasting robust multi year gains and trading at a notable discount to analyst targets, investors now face a key question: is this a fresh buying opportunity, or has the market already priced in future growth?

Most Popular Narrative Narrative: 20.7% Undervalued

With United Rentals last closing at $813.66 versus a narrative fair value above $1,020, the valuation case hinges heavily on future growth and capital allocation.

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 see how steady top line expansion, rising margins and shrinking share count combine into that upside case? The full narrative unpacks the precise growth runway, profit trajectory and future earnings multiple behind this fair value call.

Result: Fair Value of $1,025.47 (UNDERVALUED)

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

However, a slowdown in large project activity, or sustained margin pressure from higher repositioning and ancillary costs, could quickly challenge that upbeat valuation story.

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

Build Your Own United Rentals Narrative

If you see the story differently, or would rather test your own assumptions against the data, you can build a custom view in minutes with 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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