United Rentals (URI) Valuation: Is There Value Left After the Recent Share Price Pullback?

United Rentals (URI) shares have shown some movement this week as investors weigh the company’s recent performance and shifting expectations for the equipment rental industry. With demand signals fluctuating, many are taking a closer look at the company’s long-term outlook.

See our latest analysis for United Rentals.

While United Rentals’ share price has cooled after a sharp run earlier this year, with a 14.7% drop over the last month, its strong year-to-date gain of nearly 23% hints at underlying optimism among long-term investors. Still, the stock's one-year total shareholder return is just shy of breakeven. This suggests that despite periods of momentum, some are now reassessing future growth and risk.

If the shifting fortunes of United Rentals have you thinking about where opportunity might come next, it could be the perfect moment to discover fast growing stocks with high insider ownership

With United Rentals currently trading at a notable discount to analysts’ targets and long-term profit growth in view, it raises the question: is there real value left for buyers, or has the market already factored in its future gains?

Most Popular Narrative: 17.5% Undervalued

United Rentals' most popular valuation perspective points to a significant fair value upside from the last close. This suggests that the current share price may not fully reflect longer-term earnings potential. With the latest fair value estimate set well above where shares finished, attention turns to the rationale driving this outlook.

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 gap between price and value? Big assumptions about margin gains and sales expansion could be key. How might these financial bets change United Rentals' worth in a fast-evolving sector? Dive deeper to uncover what’s driving this compelling valuation call.

Result: Fair Value of $1,028.75 (UNDERVALUED)

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

However, rising project delays or ongoing margin compression could still challenge the optimistic case and test United Rentals' growth expectations 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 enjoy diving into the numbers yourself, you can shape your own viewpoint in just a few minutes. 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.

Looking for more investment ideas?

Smart investors always have an eye on what’s next, and the best moves come from acting early on exciting opportunities. Use these powerful shortcuts to pinpoint stocks with serious upside, dependable yields, or breakthroughs in future tech—while others are still watching from the sidelines.

• Unlock the potential of tiny companies with major growth stories by starting your search among these 3587 penny stocks with strong financials. Hidden gems found here can make a big impact on your portfolio.
• Accelerate your returns by tapping into the booming AI trend. See which cutting-edge businesses are capturing attention within these 24 AI penny stocks now.
• Build steady income and shield against market swings with these 16 dividend stocks with yields > 3%, featuring stocks offering reliable yields above 3%.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com