SummaryUnited Rentals is a fundamentally improved, capital-intensive compounder with strong Specialty segment growth and margin recovery, but the current valuation already prices in much of the upside.Q3 results exceeded expectations: fleet productivity up 6.5%, Specialty gross margin rebounded to 47.6%, and ROIC reached 12.3%, supporting a modest fair value increase.I rate URI as Hold near $1,069, with a new fair value range of $1,000–$1,025; I would consider buying below $900 and be aggressive below $850 if fundamentals hold.URI’s ability to flex capex in downturns, scale advantages, and improving Specialty economics support optimism, but the 2028 EBITDA and ROIC targets are not yet fully de-risked. Justin Paget/DigitalVision via Getty Images
United Rentals, Inc. (URI) is a better business than the first glance “cyclical equipment rental cycle” narrative would have you thinking.
Demand for large projects is strong, and their rental penetration continues to increase. URI has
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On its third-quarter 2026 earnings call, held on Oct. 22, 2026, United Rentals (URI +3.93%) reported record total revenue of $4.9 billion and raised its full-year financial guidance. High demand across non-residential construction and industrial projects continues to fuel long-term expansion for equipment rental providers. Three things management said stand out.
1. Specialty Rental Growth Outpaces General Equipment DemandSpecialty rental segment offerings, which include specialized equipment solutions such as trench safety and fluid management, yield higher margins than traditional fleet rentals. Management continues to aggressively expand these high-return categories by opening 40 cold starts, or brand-new branch locations built from scratch, through the first nine months of the year.
Specialty was a standout with rental revenue growth of 35% year-over-year, including 12 cold starts, which brings us to 40 cold starts year-to-date. Notably, each specialty line of business reported strong double-digit growth in the quarter.
-- Matt Flannery, President and Chief Executive Officer2. Operational Discipline Drives Efficiency Across Core Cost CentersControlling overhead and field logistics is essential when a company absorbs industrywide cost inflation. Management expanded operational efficiency across labor absorption, delivery logistics, and R&M (repair and maintenance) expenses to support core profitability.
Certainly we have gotten very good labor absorption, and you can see that in both sides of the businesses, and you mentioned R&M, but almost back to Rob's question, I think the team has also done an extraordinary job on the delivery side.
-- Ted Grace, Chief Financial Officer3. Mega-Project Activity Supports Raised Full-Year Capital SpendingMultiyear construction projects in data centers, energy, and infrastructure provide steady long-term demand for heavy machinery. That persistent customer activity prompted management to increase its full-year gross capex, or capital expenditures spent purchasing physical equipment, to over $5.3 billion.
Large projects across a variety of end markets are driving our growth, and we expect this momentum will carry for the remainder of this year and into next year.
-- Matt Flannery, President and Chief Executive OfficerLooking AheadLarge infrastructure, energy, and data center projects continue to accelerate across North America, and management is not hiding its satisfaction with the momentum entering 2027. Scale, broad fleet availability, and digital management tools give the company structural advantages as it prioritizes pricing discipline and capital efficiency.
The demand environment for large projects remains robust, supporting our revised guidance, which reflects over 12% total revenue growth, with EBITDA margins over 46%, all at the midpoint.
-- Matt Flannery, President and Chief Executive OfficerCombining general-rent, or standard job-site machinery like boom lifts, with specialized job-site solutions creates a durable operational moat. That multi-product offering allows United Rentals to capture market share on complex construction sites and convert high fleet utilization into long-term shareholder value.
By layering on technology, innovation, and unmatched service across both our specialty and gen rent businesses, we support our customers' productivity and drive a better partnership.
-- Matt Flannery, President and Chief Executive OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Total Revenue: Grew 16% year-over-year to $4.9 billion, a quarterly record.Rental Revenue: Increased 18% to $4.3 billion, a quarterly record.Fleet Productivity:
The AI Boom’s Next Big Winners May Wear Hard HatsUnited Rentals NYSE: URI reported record third-quarter results and raised its full-year outlook, citing sustained demand from large projects across construction, infrastructure, energy, manufacturing and data-center-related end markets.
Total revenue rose 16% year over year to $4.9 billion during the third quarter, while rental revenue increased 18% to a record $4.3 billion, President and Chief Executive Officer Matt Flannery said. Adjusted EBITDA reached a record $2.3 billion, with the adjusted EBITDA margin expanding 160 basis points from a year earlier to 47.6%. Adjusted earnings per share increased 33% to a record $15.55.
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The 3 Biggest M&A Stock Opportunities for 2025“Large projects across a variety of end markets are driving our growth, and we expect this momentum will carry for the remainder of this year and into next year,” Flannery said.
Rental Demand and Specialty Growth
Rental revenue growth was supported by a 12.9% increase in owned equipment rental revenue, or OER. Chief Financial Officer Ted Grace said OER growth reflected a 7.9% increase in average fleet size and fleet productivity of 6.5%, partly offset by assumed fleet inflation of 1.5%.
3 large caps near 52-week lows with large dividendsFlannery said fleet productivity benefited from rate, time utilization and mix. He added that pricing has continued to increase and should remain important as the company works to recover inflation-related costs. United Rentals manages pricing throughout the year rather than relying on a single renewal period, he said.
Specialty rental revenue grew 35% from the prior-year quarter. The company opened 12 specialty locations, or “cold starts,” during the period, bringing its year-to-date total to 40. Flannery said every specialty business line delivered double-digit growth in the quarter.
Construction activity increased in non-residential and infrastructure markets, while industrial activity was supported by double-digit growth in power, metals and minerals, according to management. The company said it began projects during the quarter in energy, manufacturing, infrastructure and data-center-related markets.
Executives characterized local markets as stable, with Flannery saying they contributed “a couple of points of growth” in the quarter. However, he said large projects and larger customers remained the primary growth drivers. Management did not offer a forecast for when local markets could accelerate as interest rates decline, saying it would rely on feedback from its local operating teams during its planning process.
Margins, Costs and Fleet Investment
Grace said adjusted EBITDA increased by $385 million from a year earlier, driven primarily by a $417 million gain in rental gross profit. Used-equipment gross profit increased by $8 million, while gross profit from other business lines added $14 million. SG&A expense rose $54 million, but declined 20 basis points as a percentage of revenue.
The company said cost discipline helped it offset inflationary pressures and the lower-margin mix associated with ancillary and re-rent revenue. Ancillary and re-rent revenue grew more than 37% during the quarter, outpacing OER growth.
Management attributed improved operating efficiency to labor absorption, maintenance and repair productivity, and delivery-cost controls. Grace said restructuring actions announced earlier in the year performed in line with expectations, but were not a major contributor to the year-over-year margin improvement.
United Rentals increased gross rental capital expenditures by $1.8 billion in the third quarter, bringing year-to-date spending to $4.7 billion. Flannery said the investments respond to current demand and high time utilization, while the company’s expectation for growth in 2027 also supports the decision to add fleet.
Specialty operations receive a disproportionately large share of growth capital expenditures because of cold starts and their higher growth rate, Flannery said. Within general rentals, capital spending has been spread broadly across the company’s equipment categories to serve major projects.
Management said re-rent activity primarily reflects strong demand and high utilization, although it can also help meet customer needs when equipment is unavailable locally or is needed for a short period. Grace said equipment added through capital expenditures could shift some revenue from re-rent toward OER over time.
Used Equipment, Cash Flow and Capital Allocation
The company sold $677 million of original equipment cost, or OEC, during the quarter, generating $348 million of proceeds. The adjusted margin was 46.3%, and the recovery rate was 51.4%. United Rentals expects to sell about $2.8 billion of OEC for the full year at a recovery rate in the low-50% range.
Grace said the used-equipment market has normalized and remains supported by deep demand. He characterized current used-equipment margins as normalized and said the company was not expecting significant variability.
Year-to-date free cash flow exceeded $1.4 billion, while return on invested capital increased 30 basis points year over year to 12.3%. Net leverage was 1.8 times at the end of September, within the company’s target range of 1.5 times to 2.5 times, and total liquidity exceeded $2.6 billion.
United Rentals returned about $1.5 billion to shareholders through the third quarter, including $1.125 billion in repurchases and $371 million in dividends. The company still plans to repurchase $1.5 billion of stock during 2026. Combined with dividends, it expects to return roughly $2 billion to shareholders for the year.
The company also noted that S&P upgraded its credit rating to investment grade earlier in the month. Grace said the designation should provide lower borrowing spreads over time as United Rentals refinances or issues debt, but does not alter its capital-allocation framework of funding organic growth, pursuing acquisitions and returning excess capital to shareholders.
Raised 2026 Outlook
United Rentals raised its full-year total revenue outlook to a range of $18.0 billion to $18.2 billion, up $450 million at the midpoint from prior guidance. Adjusted EBITDA guidance increased by $300 million to $8.3 billion to $8.4 billion.
Gross rental capital expenditures are now expected to be $5.2 billion to $5.5 billion.
Net capital expenditures are projected at $3.75 billion to $4.05 billion.
Free cash flow guidance was reaffirmed at $2.15 billion to $2.45 billion.
Used sales are expected to total about $1.45 billion.
At the midpoint, the updated revenue outlook implies total revenue growth excluding used sales of more than 13%, compared with the company’s initial expectation of roughly 6% growth. Grace said the EBITDA forecast also implies approximately 70 basis points of full-year margin improvement after adjusting for the prior-year H&E termination fee and the current-year gain from the sale of the company’s scaffolding business.
Looking toward 2027, management said it remains encouraged by customer sentiment, diversified end-market exposure and demand for large projects. Flannery said the company is more bullish on the longer-term outlook than it was six to 12 months ago, while acknowledging that some areas, including residential construction and downstream oil and gas activity, remain softer.
About United Rentals (NYSE:URI)United Rentals, Inc is an equipment rental company serving construction, industrial, infrastructure, utilities, government and other commercial customers. The company provides access to equipment and related services through a network of rental locations, helping customers manage projects without purchasing and maintaining all of the equipment they need.
Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, general construction tools, trucks and trailers, and light-duty equipment.
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United Rentals, Inc. ( URI ) Q3 2026 Earnings Call October 22, 2026 8:30 AM EDT Company Participants Matthew Flannery - President, CEO & Director William Grace - Executive VP & CFO Conference Call Participants David Raso - Evercore ISI Institutional Equities, Research Division Robert Wertheimer - Melius Research LLC Jerry Revich - Wells Fargo Securities, LLC, Research Division Angel Castillo Malpica - Morgan Stanley, Research Division Seth Weber - BNP Paribas, Research Division Kyle Menges - Citigroup Inc., Research Division Charles Albert Dillard - Bernstein Institutional Services LLC, Research Division Mircea Dobre - Robert W. Baird & Co. Incorporated, Research Division Jamie Cook - Truist Securities, Inc., Research Division Steven Fisher - UBS Investment Bank, Research Division Sabahat Khan - RBC Capital Markets, Research Division Daniel Hultberg - Oppenheimer & Co. Inc., Research Division Neil Tyler - Rothschild & Co Redburn, Research Division Presentation Operator Good morning, everyone, and welcome to the United Rentals Investor Conference Call.
Key Takeaways United Rentals' adjusted EPS surged 32.9% to $15.55, while revenues rose 15.7% to $4.89 billion.Specialty rental revenues jumped 34.7% to $1.7 billion, with gross margin expanding 250 bps to 47.6%.URI raised 2026 revenue guidance to $18-$18.2 billion and adjusted EBITDA to $8.3-$8.4 billion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year.
Strong rental demand and operating efficiencies supported the results. Fleet productivity, which combines rental rates, time utilization and mix, improved 6.5% year over year.
URI stock inched up 1% in yesterday’s after-hours trading, following the earnings release.
URI's Q3 Earnings & RevenuesURI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share.
Total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
URI's Rental Revenues Reach a Quarterly RecordRental revenues increased 17.8% year over year to a quarterly record of $4.32 billion. Average fleet size, measured at original equipment cost, rose 7.9%. Owned equipment rental revenues grew 12.9% to $3.32 billion. Revenues from re-renting equipment sourced from other vendors surged 76.7% to $129 million, while ancillary and other rental revenues climbed 33% to $871 million.
Used equipment sales rose 4.5% to $348 million, with an adjusted gross margin of 46.3% compared with 45.9% a year earlier. New equipment sales fell 11.6% to $84 million. Contractor supplies sales and service and other revenues increased 9.3% to $47 million and 5.4% to $98 million, respectively.
United Rentals' Specialty Business Leads GrowthGeneral Rentals segment rental revenues increased 8.8% year over year to $2.61 billion. Rental gross profit grew 13.8% to $1 billion, while gross margin expanded 170 basis points (bps) to 38.4%. Specialty rental revenues surged 34.7% to $1.7 billion. Rental gross profit increased 42.3% to $811 million, with gross margin expanding 250 bps to 47.6%.
Both segments benefited from efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery. Faster growth in lower-margin ancillary and re-rent revenues partly offset these gains.
URI Expands Profitability Despite Higher CostsGross profit increased 22.9% to $2.05 billion, with gross margin improving to 41.8% from 39.4%. Selling, general and administrative expenses rose 15.6% to $511 million but declined to 10.4% of revenues from 10.5%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 19.8% to a quarterly record of $2.33 billion. Its margin expanded 160 bps to 47.6%, supported partly by a higher proportion of revenues from equipment rentals. Operating income grew 26.5% to $1.41 billion, with operating margin increasing to 28.8% from 26.3%.
United Rentals Strengthens Cash GenerationFor the first nine months of 2026, operating cash flow rose 25.4% to $4.93 billion. Free cash flow increased 19.2% to $1.42 billion, including $27 million of restructuring-related payments.
United Rentals ended September 2026 with liquidity of $2.62 billion, including $153 million in cash and equivalents. Net leverage, or net debt divided by trailing 12-month adjusted EBITDA, improved to 1.8x from 1.9x at the end of 2025. Total debt increased to $14.67 billion from $14.23 billion over that period.
URI Keeps Shareholder Returns on TrackURI returned $1.496 billion to shareholders during the first nine months of 2026, comprising $1.125 billion in share repurchases and $371 million in dividends. It completed its prior $2 billion repurchase program and began its new $5 billion authorization.
The company still expects $1.5 billion of share repurchases in 2026. It declared a quarterly dividend of $1.97 per share, payable Nov. 25, 2026, to shareholders of record Nov. 11, 2026.
United Rentals Raises 2026 GuidanceManagement raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected at $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.
Operating cash flow is expected at $6.25-$6.85 billion, up from $5.85-$6.65 billion. The free cash flow outlook, excluding restructuring-related payments, remains $2.15-$2.45 billion.
Net rental capital expenditures are projected at $3.75-$4.05 billion after gross purchases of $5.2-$5.5 billion compared with $3.4-$3.8 billion after gross purchases of $4.85-$5.25 billion previously. Management cited customer confidence, backlogs and large-project momentum as support for the raised outlook.
URI’s Zacks Rank & Few Stocks Poised to Beat EarningsUnited Rentals currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some other companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat.
Sterling Infrastructure, Inc. (STRL - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank of 2 at present.
Sterling’s earnings beat estimates in each of the last four quarters, the average surprise being 27.2%. The company’s earnings for the third quarter of 2026 are expected to grow 74.4% year over year.
AAON, Inc. (AAON - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank #3 (Hold).
AAON’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion, the average surprise being 21.6%. The company’s earnings for the third quarter of 2026 are expected to increase 54.1% year over year.
Argan, Inc. (AGX - Free Report) has an Earnings ESP of +4.79% and a Zacks Rank of 3.
Argan’s earnings beat estimates in each of the last four quarters, the average surprise being 44.2%. The company’s earnings for the third quarter of fiscal 2027 are expected to increase 53.9% year over year.
United Rentals (URI - Free Report) came out with quarterly earnings of $15.55 per share, beating the Zacks Consensus Estimate of $13.83 per share. This compares to earnings of $11.7 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.44%. A quarter ago, it was expected that this equipment rental company would post earnings of $11.67 per share when it actually produced earnings of $12.76, delivering a surprise of +9.34%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
United Rentals, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $4.89 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 4.29%. This compares to year-ago revenues of $4.23 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
United Rentals shares have added about 29% since the beginning of the year versus the S&P 500's gain of 12.7%.
What's Next for United Rentals?While United Rentals has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for United Rentals was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $13.09 on $4.65 billion in revenues for the coming quarter and $49.11 on $17.76 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Knife River (KNF - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This construction materials company is expected to post quarterly earnings of $2.59 per share in its upcoming report, which represents a year-over-year change of +2.8%. The consensus EPS estimate for the quarter has been revised 18.5% lower over the last 30 days to the current level.
Knife River's revenues are expected to be $1.29 billion, up 7.5% from the year-ago quarter.
United Rentals (URI - Free Report) reported $4.89 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 15.7%. EPS of $15.55 for the same period compares to $11.70 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.69 billion, representing a surprise of +4.29%. The company delivered an EPS surprise of +12.44%, with the consensus EPS estimate being $13.83.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how United Rentals performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Equipment rentals: $4.32 billion versus the three-analyst average estimate of $4.07 billion. The reported number represents a year-over-year change of +17.8%.Revenues- Sales of rental equipment: $348 million compared to the $368.1 million average estimate based on three analysts. The reported number represents a change of +4.5% year over year.Revenues- Service and other revenues: $98 million compared to the $99.82 million average estimate based on three analysts. The reported number represents a change of +5.4% year over year.Revenues- Contractor supplies sales: $47 million versus $46.48 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.Revenues- Sales of new equipment: $84 million versus $109.25 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.6% change.Gross Margin/Profit- Equipment rentals: $1.81 billion versus $1.6 billion estimated by three analysts on average.Gross Margin/Profit- Sales of rental equipment: $156 million compared to the $164.52 million average estimate based on three analysts.Gross Margin/Profit- Service and other: $40 million versus $39.23 million estimated by three analysts on average.Gross Margin/Profit- Contractor supplies sales: $18 million versus $11.91 million estimated by three analysts on average.Gross Margin/Profit- Sales of new equipment: $18 million versus the three-analyst average estimate of $21.97 million.View all Key Company Metrics for United Rentals here>>>
Shares of United Rentals have returned +0.1% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) today announced record financial results for the third quarter of 2026, and raised its 2026 full-year guidance. Third Quarter 2026 Highlights Total revenue of $4.893 billion, including rental revenue1 of $4.316 billion. Net income of $920 million, at a margin2 of 18.8%. GAAP diluted earnings per share (“EPS”) of $14.77, and adjusted EPS3 of $15.55. Adjusted EBITDA3 of $2.331 billion, at a margin2 of 47.6%. Year-over-year, fleet.
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) announced today that its Board of Directors declared a quarterly cash dividend of $1.97 per share, payable on November 25, 2026 to stockholders of record as of November 11, 2026. About United Rentals United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,686 rental locations in North America, 44 in Europe, 47 in Australia and 18 in New Zealand. In North America, the.
Key Takeaways United Rentals' Q3 EPS estimate rose to $13.75, implying 17.5% year-over-year growth.General Rentals revenues are projected to rise 6.9% to $3.02B, while Specialty revenues may climb 20.4%.Fleet productivity, rate management & cost controls could lift earnings, offsetting inflationary pressures. United Rentals, Inc. (URI - Free Report) is scheduled to report its third-quarter 2026 results on Oct. 21, after market close.
In the last reported quarter, the company’s adjusted earnings per share (EPS) and total revenues topped the Zacks Consensus Estimate by 9.3% and 4.1%, respectively. Year over year, the metrics also grew 21.9% and 11.8%, respectively.
URI’s earnings surpassed estimates in two of the trailing four quarters and missed on the other two occasions, with an average surprise of 1%.
How are Estimates Placed for URI Stock?The Zacks Consensus Estimate for third-quarter EPS has moved upward to $13.75 from $13.64 over the past 30 days. However, the estimated figure indicates a 17.5% increase from the year-ago quarter’s earnings of $11.70 per share.
The consensus estimate for total revenues is pegged at $4.67 billion, indicating growth of 10.4% from the prior-year quarter’s level.
Factors at Play for United Rentals’ Q3 ResultsRevenues
The top-line performance of United Rentals is expected to have improved year over year from favorable secular trends in non-residential construction, infrastructure modernization, power, manufacturing, mining and data center development. These are likely to have resulted in healthy equipment rental demand, thus boosting the contributions from the General Rentals business segment (which contributed 54.8% to second-quarter 2026 total revenues) and the Specialty business segment (which contributed 32.4% to second-quarter 2026 total revenues).
Specialty rentals, which offer higher margins and remain central to United Rentals’ expansion strategy, are expected to have supported revenue growth both organically and through cold starts that added capacity in new markets. Moreover, URI’s extensive and diverse fleet allows it to manage its rental fleet through a life-cycle approach that focuses on satisfying customer demand and optimizing utilization levels. This business approach is expected to have enabled the company to serve large customers that require a wide range of equipment. Also, acquisitions and joint ventures are likely to have catalyzed the growth trends in the to-be-reported quarter.
For the third quarter, the Zacks Consensus Estimate for revenues from General Rentals and Specialty business segments is pegged at $3.02 billion and $1.69 billion, reflecting year-over-year growth of 6.9% and 20.4%, respectively. The consensus mark for revenues from equipment rentals is $4.07 billion, up from $3.67 billion reported a year ago.
Earnings & Margins
United Rentals is expected to report year-over-year earnings growth in the third quarter, attributable to higher fleet productivity and disciplined rate management. These factors, along with continued cost control, are likely to have contributed to improved profitability and earnings performance.
Although inflationary pressures and elevated delivery costs are likely to have partly offset these gains, the ongoing in-house initiatives by URI and elevated top-line leverage are expected to have more than overpowered the headwinds.
The consensus estimate for equipment rentals gross profit under the General Rentals and Specialty business segments is pegged at $957 million and $640 million, indicating year-over-year growth from $881 million and $570 million, respectively.
What the Zacks Model Indicates for URIOur proven model conclusively predicts an earnings beat for United Rentals this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
URI’s Earnings ESP: URI has an Earnings ESP of +1.79%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of URI: The stock currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat EarningsHere are some other companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat.
Sterling Infrastructure, Inc. (STRL - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank of 2 at present.
Sterling’s earnings beat estimates in each of the last four quarters, the average surprise being 27.2%. The company’s earnings for the third quarter of 2026 are expected to grow 74.4% year over year.
AAON, Inc. (AAON - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank of 3.
AAON’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion, the average surprise being 21.6%. The company’s earnings for the third quarter of 2026 are expected to increase 54.1% year over year.
Argan, Inc. (AGX - Free Report) has an Earnings ESP of +4.79% and a Zacks Rank of 3.
Argan’s earnings beat estimates in each of the last four quarters, the average surprise being 44.2%. The company’s earnings for the third quarter of fiscal 2027 are expected to increase 53.9% year over year.
Analysts on Wall Street project that United Rentals (URI - Free Report) will announce quarterly earnings of $13.75 per share in its forthcoming report, representing an increase of 17.5% year over year. Revenues are projected to reach $4.67 billion, increasing 10.3% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some United Rentals metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Revenues- Equipment rentals' will reach $4.07 billion. The estimate points to a change of +11.1% from the year-ago quarter.
The consensus among analysts is that 'Revenues- Sales of rental equipment' will reach $368.10 million. The estimate indicates a change of +10.5% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Service and other revenues' should arrive at $99.82 million. The estimate indicates a change of +7.3% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenues- Contractor supplies sales' should come in at $46.48 million. The estimate indicates a year-over-year change of +8.1%.
The average prediction of analysts places 'Revenues- Sales of new equipment' at $109.25 million. The estimate indicates a change of +15% from the prior-year quarter.
The combined assessment of analysts suggests that 'Gross Margin/Profit- Equipment rentals' will likely reach $1.60 billion. Compared to the present estimate, the company reported $1.45 billion in the same quarter last year.
The consensus estimate for 'Gross Margin/Profit- Sales of rental equipment' stands at $164.52 million. The estimate compares to the year-ago value of $147.00 million.
Analysts expect 'Gross Margin/Profit- Service and other' to come in at $39.23 million. The estimate compares to the year-ago value of $36.00 million.
Analysts' assessment points toward 'Gross Margin/Profit- Contractor supplies sales' reaching $11.91 million. The estimate compares to the year-ago value of $11.00 million.
The collective assessment of analysts points to an estimated 'Gross Margin/Profit- Sales of new equipment' of $21.97 million. Compared to the current estimate, the company reported $20.00 million in the same quarter of the previous year.
View all Key Company Metrics for United Rentals here>>>
Over the past month, United Rentals shares have recorded returns of +4.5% versus the Zacks S&P 500 composite's +2.4% change. Based on its Zacks Rank #2 (Buy), URI will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Construction stock. URI has a Momentum Style Score of A, and shares are up 2.8% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.32 to $48.91 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URI should be on investors' short list.
United Rentals (URI - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 21. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis equipment rental company is expected to post quarterly earnings of $13.75 per share in its upcoming report, which represents a year-over-year change of +17.5%.
Revenues are expected to be $4.67 billion, up 10.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.12% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for United Rentals?For United Rentals, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.79%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that United Rentals will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that United Rentals would post earnings of $11.67 per share when it actually produced earnings of $12.76, delivering a surprise of +9.34%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
United Rentals appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
United Rentals (URI) delivered strong Q2 results, with revenue of $4.41B, adjusted EPS of $12.76, and raised full-year guidance. Specialty rental revenue grew 25%, and management demonstrated improved cost control, notably in delivery expenses and labor productivity. Despite operational improvements, URI trades at a 21.3x forward P/E, well above its five-year average, making current valuation less attractive.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. URI has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.3% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.32 to $48.91 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, URI should be on investors' short list.
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) will hold its third quarter 2026 conference call with Matt Flannery, chief executive officer, and Ted Grace, chief financial officer, on Thursday, October 22, 2026 at 8:30 a.m. Eastern Time. The conference call is available live by audio webcast at unitedrentals.com, where it will be archived until the next earnings call. The call is also accessible by dialing 800-791-4799 (international: 785-424-1631). The replay number for the.
On October 07, 2026, United Rentals Inc URI shares fell 4.0% to a current price of $1037.44. This decline comes amid a 52-week range of $701.59 to $1179.18, reflecting a notable level of volatility in the stock price.
GF Value™ verdict: Current price is 15.7% above GF Value™ of $897.02, indicating overvaluation.GF Score™ of 92/100 suggests a strong overall performance, particularly in profitability and growth.Insider activity shows a net selling of $30.4M over the past 12 months, which could signal a lack of confidence from insiders.Is URI Overvalued or Undervalued?The current price of United Rentals Inc URI at $1037.44 is significantly above its GF Value™, which is estimated at $897.02. This indicates that the stock is overvalued by approximately 15.7%, which raises concerns about the margin of safety for potential investors. The GF Valuation label categorizes URI as "Modestly Overvalued," suggesting that while the company may have strong fundamentals, its current market price does not reflect a favorable buying opportunity.
GF Value™ is GuruFocus' proprietary intrinsic-value estimate that considers historical trading multiples, past business growth, and estimates of future performance. Given the current overvaluation, investors may need to exercise caution as there is a risk that the stock could decline to align more closely with its intrinsic value.
How Does URI's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)24.9x18.0x (5-Year Median)Forward P/E18.2x-URI's current P/E ratio of 24.9x is considerably higher than its 5-year median P/E of 18.0x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis is consistent with the GF Value™ verdict of being overvalued, further reinforcing the notion that the current price may not justify the earnings potential of the company.
What Does URI's GF Score™ Tell Us?The GF Score™ measures a stock's overall performance based on various factors including financial strength, profitability, growth potential, valuation, and momentum. URI's score of 92/100 indicates excellent performance, with standout strengths in profitability and growth, both rated at 10/10. However, the valuation rank is a weaker 5/10, which aligns with the concerns raised by its overvaluation.
MetricRatingGF Score™92Financial Strength4/10Profitability10/10Growth10/10Valuation5/10Momentum8/10Overall, URI's strong profitability and growth scores suggest that the company is performing well in terms of generating earnings and expanding its business. However, the relatively low financial strength score indicates potential weaknesses in its balance sheet, and the modest valuation rank highlights concerns regarding its current price relative to its fundamentals.
What Are Gurus and Insiders Doing with URI?Currently, 10 gurus hold shares of URI, with 4 adding to their positions and 5 trimming their holdings in recent quarters. This mixed activity among institutional investors reflects a cautious sentiment regarding the stock. In terms of insider trading, there has been a net selling of $30.4M over the past 12 months, with insiders buying only $0.1M worth of shares. This pattern of significant net selling may suggest that insiders are not confident in the stock's near-term prospects, which could be a red flag for other investors.
What This Means for InvestorsGiven the current overvaluation of United Rentals Inc URI with a GF Value™ indicating a fair value of $897.02 compared to the current price of $1037.44, the stock appears to be overvalued at this time. Investors should consider this valuation assessment and the recent insider selling as factors that may influence their investment decisions. For a more comprehensive look at URI's performance and metrics, visit the United Rentals Inc (URI) stock page, and explore the GF Value™ page for further insights.
Frequently Asked QuestionsWhat is URI's GF Score™?
URI's GF Score™ is 92/100, indicating strong overall performance in key areas such as profitability and growth, but with some concerns in valuation.
Is URI overvalued or undervalued?
URI is currently overvalued, with a GF Value™ of $897.02 compared to its market price of $1037.44.
What is URI's P/E ratio?
URI's P/E ratio is 24.9x, which is significantly above its 5-year median of 18.0x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider United Rentals (URI - Free Report) . This company, which is in the Zacks Building Products - Miscellaneous industry, shows potential for another earnings beat.
When looking at the last two reports, this equipment rental company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 8.55%, on average, in the last two quarters.
For the last reported quarter, United Rentals came out with earnings of $12.76 per share versus the Zacks Consensus Estimate of $11.67 per share, representing a surprise of 9.34%. For the previous quarter, the company was expected to post earnings of $9.01 per share and it actually produced earnings of $9.71 per share, delivering a surprise of 7.77%.
Price and EPS Surprise
For United Rentals, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
United Rentals currently has an Earnings ESP of +1.28%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Central Pacific Bank Trust Division grew its holdings in United Rentals, Inc. (NYSE:URI – Free Report) by 117.5% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 1,242 shares of the construction company’s stock after purchasing an additional 671 shares during the period. Central Pacific Bank Trust Division’s holdings in United Rentals were worth $1,243,000 as of its most recent SEC filing.
A number of other institutional investors also recently modified their holdings of URI. BlackRock Inc. acquired a new stake in United Rentals in the second quarter valued at about $5,816,326,000. State Street Corp raised its stake in United Rentals by 1.1% during the second quarter. State Street Corp now owns 2,993,837 shares of the construction company’s stock worth $3,391,688,000 after acquiring an additional 32,238 shares in the last quarter. Franklin Resources Inc. raised its stake in United Rentals by 2.2% during the fourth quarter. Franklin Resources Inc. now owns 1,343,981 shares of the construction company’s stock worth $1,087,711,000 after acquiring an additional 28,895 shares in the last quarter. Bank of America Corp DE bought a new position in shares of United Rentals in the second quarter worth about $944,196,000. Finally, Boston Partners boosted its stake in shares of United Rentals by 4.0% in the 4th quarter. Boston Partners now owns 774,347 shares of the construction company’s stock valued at $631,459,000 after purchasing an additional 29,675 shares in the last quarter. Institutional investors and hedge funds own 96.26% of the company’s stock.
United Rentals Stock Performance Shares of United Rentals stock opened at $1,073.97 on Tuesday. The company has a quick ratio of 0.70, a current ratio of 0.76 and a debt-to-equity ratio of 1.38. United Rentals, Inc. has a twelve month low of $701.59 and a twelve month high of $1,179.18. The stock has a market cap of $66.85 billion, a price-to-earnings ratio of 25.79, a P/E/G ratio of 1.59 and a beta of 1.83. The company’s fifty day moving average is $1,061.55 and its 200 day moving average is $991.27.
United Rentals (NYSE:URI – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $11.53 by $1.23. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The business had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same period last year, the company earned $10.47 EPS. United Rentals’s revenue for the quarter was up 11.8% compared to the same quarter last year. Sell-side analysts forecast that United Rentals, Inc. will post 48.7 EPS for the current year. United Rentals Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Wednesday, August 12th were issued a $1.97 dividend. The ex-dividend date was Wednesday, August 12th. This represents a $7.88 annualized dividend and a yield of 0.7%. United Rentals’s dividend payout ratio is presently 18.92%.
Insider Buying and Selling In other United Rentals news, EVP William Grace sold 1,500 shares of the stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total transaction of $1,699,725.00. Following the completion of the sale, the executive vice president owned 6,062 shares of the company’s stock, valued at approximately $6,869,155.30. This represents a 19.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.47% of the stock is owned by insiders.
Wall Street Analysts Forecast Growth A number of equities analysts recently issued reports on the stock. Raymond James Financial reiterated an “outperform” rating and set a $1,275.00 price objective on shares of United Rentals in a research report on Wednesday, June 10th. Barclays boosted their target price on shares of United Rentals from $715.00 to $950.00 and gave the stock an “underweight” rating in a research note on Friday, July 24th. Argus reissued a “buy” rating and set a $1,250.00 price objective on shares of United Rentals in a report on Tuesday, August 4th. UBS Group set a $1,170.00 target price on United Rentals in a report on Thursday, September 10th. Finally, Truist Financial dropped their target price on United Rentals from $1,466.00 to $1,395.00 and set a “buy” rating for the company in a research report on Monday. Fifteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,239.19.
Read Our Latest Stock Report on URI
United Rentals Profile (Free Report)
United Rentals, Inc is an equipment rental company headquartered in Stamford, Connecticut. The company provides construction, industrial, commercial, and homeowner customers with access to equipment without requiring them to purchase and maintain their own fleets.
Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trench safety products, power-generation and climate-control equipment, pumps, tools, and general construction equipment. United Rentals also provides specialty services such as mobile storage, fluid solutions, power and HVAC support, and project-based equipment management.
Founded in 1997, United Rentals has grown through organic expansion and acquisitions into a large equipment-rental network serving customers primarily in the United States and Canada, with additional operations in Europe and Australia.
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Eastern Bank raised its holdings in United Rentals, Inc. (NYSE:URI – Free Report) by 20.0% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 20,593 shares of the construction company’s stock after purchasing an additional 3,427 shares during the quarter. Eastern Bank’s holdings in United Rentals were worth $20,609,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds have also recently bought and sold shares of the company. Clal Insurance Enterprises Holdings Ltd purchased a new position in United Rentals in the 2nd quarter valued at about $29,000. MidFirst Bank purchased a new stake in shares of United Rentals during the second quarter valued at approximately $31,000. MV Capital Management Inc. acquired a new stake in shares of United Rentals during the fourth quarter valued at about $28,000. Bell Investment Advisors Inc acquired a new position in shares of United Rentals in the 2nd quarter valued at approximately $40,000. Finally, Hilton Head Capital Partners LLC bought a new position in United Rentals during the 4th quarter valued at $34,000. 96.26% of the stock is owned by hedge funds and other institutional investors.
Insider Activity In other United Rentals news, EVP William Grace sold 1,500 shares of the business’s stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the transaction, the executive vice president owned 6,062 shares in the company, valued at $6,869,155.30. The trade was a 19.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 0.47% of the company’s stock.
NYSE:URI traded up $4.87 during trading hours on Monday, hitting $1,085.90. 124,375 shares of the company’s stock traded hands, compared to its average volume of 563,059. United Rentals, Inc. has a twelve month low of $701.59 and a twelve month high of $1,179.18. The firm has a market cap of $67.59 billion, a P/E ratio of 26.08, a P/E/G ratio of 1.59 and a beta of 1.83. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76. The stock’s fifty day moving average price is $1,062.60 and its two-hundred day moving average price is $988.95. United Rentals (NYSE:URI – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $11.53 by $1.23. The business had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.22 billion. United Rentals had a net margin of 15.67% and a return on equity of 31.72%. The firm’s revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $10.47 earnings per share. On average, research analysts expect that United Rentals, Inc. will post 48.7 earnings per share for the current fiscal year.
United Rentals Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th were paid a $1.97 dividend. The ex-dividend date of this dividend was Wednesday, August 12th. This represents a $7.88 dividend on an annualized basis and a dividend yield of 0.7%. United Rentals’s dividend payout ratio is 18.92%.
Analysts Set New Price Targets A number of equities research analysts have recently weighed in on URI shares. Raymond James Financial reiterated an “outperform” rating and issued a $1,275.00 price target on shares of United Rentals in a report on Wednesday, June 10th. Morgan Stanley set a $1,335.00 price target on United Rentals and gave the company an “overweight” rating in a report on Friday, July 24th. Argus reaffirmed a “buy” rating and set a $1,250.00 target price on shares of United Rentals in a research note on Tuesday, August 4th. Barclays upped their price objective on shares of United Rentals from $715.00 to $950.00 and gave the stock an “underweight” rating in a report on Friday, July 24th. Finally, Wall Street Zen cut shares of United Rentals from a “buy” rating to a “hold” rating in a research note on Saturday, September 12th. Fifteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, United Rentals has a consensus rating of “Moderate Buy” and an average target price of $1,239.19.
Get Our Latest Analysis on United Rentals
About United Rentals (Free Report)
United Rentals, Inc is an equipment rental company headquartered in Stamford, Connecticut. The company provides construction, industrial, commercial, and homeowner customers with access to equipment without requiring them to purchase and maintain their own fleets.
Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trench safety products, power-generation and climate-control equipment, pumps, tools, and general construction equipment. United Rentals also provides specialty services such as mobile storage, fluid solutions, power and HVAC support, and project-based equipment management.
Founded in 1997, United Rentals has grown through organic expansion and acquisitions into a large equipment-rental network serving customers primarily in the United States and Canada, with additional operations in Europe and Australia.
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From a technical perspective, United Rentals (URI - Free Report) is looking like an interesting pick, as it just reached a key level of support. URI recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Shares of URI have been moving higher over the past four weeks, up 7.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that URI could be poised for a continued surge.
Once investors consider URI's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on URI for more gains in the near future.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Construction stock. URI has a Momentum Style Score of B, and shares are up 0.6% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.34 to $48.70 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URI should be on investors' short list.
Key Takeaways URI raised its 2026 outlook as infrastructure, power, data-center and specialty demand strengthened.Herc raised its 2026 outlook as H&E integration expanded its fleet, branches and mega-project reach.URI offers lower leverage and strong cash flow, while Herc targets improving fleet efficiency. Equipment rental demand remains supported by large, multiyear projects across infrastructure, data centers, power, manufacturing and other nonresidential markets. United Rentals, Inc. (URI - Free Report) and Herc Holdings Inc. (HRI - Free Report) are two major rental providers positioned to capitalize on this activity, although their current operating profiles differ considerably. While United Rentals operates with industry-leading scale and a diversified one-stop-shop model, Herc has significantly expanded its operating platform through the H&E Equipment Services acquisition.
Both companies are seeing stronger demand from large projects while increasing fleet investment to capture growth. United Rentals is benefiting from robust nonresidential and infrastructure activity, strength in power markets and continued data-center demand. Herc, meanwhile, is leveraging its expanded branch network and fleet capacity to pursue a larger share of mega projects, particularly across energy, data centers and manufacturing. Both companies raised their 2026 outlooks in response to stronger-than-expected demand.
Let’s closely compare the fundamentals of the two stocks to determine which one has more upside.
The Case for United Rentals StockUnited Rentals enters the comparison with strong operating momentum. Second-quarter 2026 total revenues increased 12% year over year to $4.4 billion, while rental revenues advanced nearly 13% to $3.8 billion. Fleet productivity improved 3.4%, helping support a 9% increase in owned-equipment rental revenues. Adjusted EPS rose 22% year over year to $12.76.
Demand remains broad-based. Construction activity posted solid growth, led by nonresidential and infrastructure markets, while power delivered double-digit growth and metals and minerals also expanded. United Rentals is seeing project activity across hospitals, airports and LNG terminals, with data centers continuing to provide another growth avenue. Specialty is particularly strong, with second-quarter rental revenues rising 24.8% year over year to $1.43 billion, compared with 6.6% growth in General Rentals.
Strong demand prompted United Rentals to raise its 2026 outlook. Total revenues are now expected between $17.5 billion and $17.8 billion, while adjusted EBITDA is projected between $7.98 billion and $8.13 billion. Gross rental capital expenditures were also increased to $4.85-$5.25 billion as historically high utilization requires additional fleet to support customer demand. Despite the heavier investment, free cash flow guidance remains $2.15-$2.45 billion.
The balance sheet provides additional flexibility. Net leverage stood at 1.8 times at the end of June, within management’s target range, while liquidity was nearly $3 billion. United Rentals had returned $998 million to its shareholders during the first half and continues to target $1.5 billion of share repurchases for 2026.
However, United Rentals remains exposed to the cyclical construction and industrial markets. Higher fleet investment also increases the importance of maintaining utilization and rental rates, while inflation, fuel and delivery costs could pressure profitability if they cannot be fully recovered through pricing.
The Case for Herc StockHerc is entering a new phase following the integration of H&E Equipment Services. Management completed the integration during the first quarter of 2026 and shifted its focus toward improving utilization, capturing synergies and driving growth across the larger platform. Second-quarter 2026 pro forma equipment rental revenues returned to growth earlier than expected, increasing 2% despite a smaller average fleet.
The H&E acquisition has materially expanded Herc’s fleet capacity, branch density and ability to participate in large projects. National accounts are leading growth, fueled by robust mega-project activity, while specialty revenues increased at a double-digit rate. The company is directing additional fleet investments toward specialty equipment and cross-selling opportunities across its larger customer base.
Mega projects represent an especially important opportunity. Herc said its pipeline and on-rent activity across large multiyear projects are running ahead of prior assumptions. Demand is strongest across energy, data centers and manufacturing, and the expanded H&E platform gives Herc greater capacity to serve major contractors. Management consequently increased its targeted share of the U.S. mega-project rental opportunity to 20% from 15%.
Reflecting stronger national-account demand, Herc raised its 2026 outlook. At the midpoint, equipment rental revenues are expected to reach roughly $4.43 billion and adjusted EBITDA about $2.09 billion. Management expects pro forma rental revenue growth of nearly 5% on roughly flat average fleet investment, signaling improving fleet efficiency.
Stock Performance & ValuationAs shown in the chart below, in the past six months, URI’s shares have outperformed HRI, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, URI is currently trading at a premium to HRI on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: URI vs. HRIURI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.70 and $56.04 per share, respectively. The revised estimates imply year-over-year earnings growth of 15.8% and 15.1%, respectively.
URI's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRI’s 2026 earnings has increased marginally over the past 30 days to $6.97 and $10.74 per share, respectively. The estimates imply year-over-year earnings growth of 5.3% and 8.1% in 2026 and 2027, respectively.
HRI's EPS Trend
Image Source: Zacks Investment Research
Which Rental Stock Is the Better Buy?Both United Rentals and Herc are positioned to benefit from sustained equipment-rental demand tied to infrastructure, manufacturing, energy, data centers and other large-scale projects. United Rentals stands out for its industry-leading scale, strong specialty growth, high margins, robust free cash flow and lower leverage. The company also raised its 2026 revenue, EBITDA and capital-spending outlook as large-project demand remained stronger than initially expected. However, URI currently carries a Zacks Rank #3 (Hold), suggesting limited near-term earnings estimate momentum.
Herc, meanwhile, is gaining traction after completing the H&E integration. The acquisition has expanded its fleet, branch density and ability to serve national accounts and mega projects. Improving fleet utilization, double-digit specialty growth and expected revenues and cost synergies support the growth outlook. Expanded scale also creates cross-selling opportunities across the combined customer base.
From a Zacks Rank perspective, HRI currently holds the advantage with a Zacks Rank #1 (Strong Buy). Therefore, investors seeking stronger near-term earnings estimate momentum may find Herc more compelling, while United Rentals remains supported by superior balance-sheet strength and cash-generation capacity. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. URI has a Growth Style Score of B, forecasting year-over-year earnings growth of 15.8% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.45 to $48.70 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, URI should be on investors' short list.
The 3 Biggest M&A Stock Opportunities for 2025United Rentals NYSE: URI executives said construction-equipment rental demand has exceeded the company’s expectations this year, led by an accelerating pipeline of large projects and supported by continued strength in specialty rental operations.
Speaking at a Morgan Stanley event, Chief Executive Officer Matt Flannery said the company entered the year expecting large projects to drive most of its growth while local markets remained stable. That pattern has largely held, he said, but the pace of large-project activity has been stronger than anticipated.
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3 large caps near 52-week lows with large dividends“The large project pipeline has just accelerated,” Flannery said. “It has moved farther and faster than we had expected through the year.” He said the demand backdrop and the company’s execution enabled United Rentals to raise its guidance in July.
Demand Resilience Despite Cost and Rate Questions Chief Financial Officer Ted Grace said the company has navigated macroeconomic uncertainty, including unexpectedly high diesel costs. Diesel prices have averaged $5.34 per gallon year to date, compared with $3.66 per gallon a year earlier, according to Grace.
3 Compelling Cyclical Stocks to Buy NowHowever, he said customer confidence had not indicated a meaningful change in outlook despite discussion around interest rates, longer-term bond yields and broader economic conditions. Grace said the construction-rental market and the U.S. economy have remained resilient through fluctuations in rates.
Flannery and Grace attributed the company’s performance partly to a long-standing strategy of serving large contractors and major projects. Flannery said United Rentals has spent decades building relationships with major customers and expanding its ability to provide multiple equipment and service categories through a single provider.
The company now has seven specialty business units, which Flannery said are particularly relevant for complex large-scale projects. Grace also highlighted United Rentals’ vertical-market strategies in power and infrastructure, including relationships with engineering and construction firms as well as utilities.
Grace said the company began publicly emphasizing its power vertical strategy in 2016, before recent growth trends associated with electrification and artificial intelligence. He said United Rentals also built its infrastructure strategy around the belief that domestic infrastructure investment would eventually increase, including through its acquisition of Neff.
Rental Penetration and Industry Supply Discipline Flannery said the American Rental Association measures equipment-rental penetration in the high-50% range, or about 59%, up five or six percentage points from five years ago. While he did not offer a specific long-term target, Flannery said he views rental penetration as a secular opportunity.
“I believe that penetration in our industry is a one-way staircase,” Flannery said, citing the industry’s increased reliability and sophistication as reasons customers continue to rely on rental equipment.
Executives also said they see constructive supply-and-demand conditions across the rental industry. Flannery said discipline means avoiding the practice of forcing fleet into markets without adequate demand and instead matching equipment investment to market needs responsibly.
Grace said some public competitors reduced capital expenditures in 2023 and 2024 while continuing to grow, actions he described as evidence of broader industry discipline. He said that when supply is aligned with demand, rental providers are better positioned to achieve positive rental rates and asset economics.
According to Grace, industry utilization was positive year over year in every month during 2025 and has continued to be positive year to date in 2026.
Specialty Growth, Services and Capital Allocation United Rentals expects its specialty business to continue delivering double-digit organic growth, according to Grace. He said the company sees additional customer-penetration opportunities across its specialty operations, including in its more established trench and power businesses.
Power is the company’s largest specialty segment and its fastest-growing one, Grace said. Flannery also pointed to opportunities in matting, mobile storage and modular offerings, where the company still has areas of geographic whitespace in its national network.
The company supports data-center projects during their construction phases, executives said. Grace said United Rentals’ total fleet includes more than 2 gigawatts of generating capacity and can support projects with roughly 100 megawatts of temporary generating capacity. However, he said the company does not provide the long-term base-load power required by hyperscale data centers.
Executives also discussed ancillary services such as pickup and delivery, installation, setup and breakdown, and fueling. Grace said these offerings provide customers with convenience and allow them to focus on their core construction work. While the services are less profitable than the company’s core equipment-rental revenue, he said they carry contribution margins in the low-20% range and require little capital deployment.
On capital allocation, Flannery said the company’s acquisition pipeline remains robust, though United Rentals will continue to apply strategic, cultural and financial criteria to potential deals. Grace said acquisitions can be uneven from year to year and that the company is comfortable repurchasing its own shares when it lacks attractive opportunities to deploy capital through deals.
Grace said a potential investment-grade credit-rating upgrade would not constrain United Rentals’ ability to pursue acquisitions. He said the company estimates it has approximately $15 billion of debt-funded acquisition capacity and is on positive outlook with both major rating agencies.
Technology and AI Initiatives Flannery said United Rentals is also using technology and artificial intelligence to improve customer service and internal operations. The company recently announced an AI-powered equipment agent accessible through ChatGPT, designed to help customers identify equipment that may be needed for specific jobs.
United Rentals has nearly 400,000 telematics devices on its equipment fleet, Flannery said. He said the resulting data, combined with AI capabilities, could enhance tools involving pricing optimization, logistics and equipment repair troubleshooting.
“Our job isn’t to invent the technology,” Flannery said, “it’s to deploy it in a way that’s digestible to the customer.”
About United Rentals (NYSE:URI)United Rentals, Inc is an equipment rental company serving construction, industrial, commercial, government and residential customers. The company provides access to a broad range of equipment without requiring customers to purchase and maintain their own fleets.
Its rental offerings include aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power-generation and climate-control equipment, pumps, tools, trench-safety products and traffic-control equipment.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashions retailer in the U.S. and worldwide, announced today that on September 16, 2026, its Board of Directors elected Mr. Pintoff to the Board, effective immediately. Mr. Pintoff is Executive Vice President and Chief Administrative Officer of United Rentals, Inc. (NYSE: URI), a global equipment rental company, where he leads the human resources, legal, safety, and environmental func.
Key Takeaways United Rentals fell 14.7% in a month as margin pressures offset healthy large-project demand.Specialty rental revenues rose 24.8% in Q2 as United Rentals raised key 2026 outlooks.URI trades at 18.44 times forward earnings, while 2026 and 2027 earnings estimates have risen. United Rentals (URI - Free Report) , the world’s largest equipment rental company, has witnessed a sharp pullback, with its stock declining 14.7% over the past month. The stock underperformed the 11% decline of the Zacks Building Products - Miscellaneous Industry, the 9.4% fall of the broader Zacks Construction sector and the 1.1% decline of the S&P 500 Index. The weakness comes despite United Rentals’ leading market position, extensive rental network and diversified exposure to construction and industrial end markets. The company operates an integrated network of 1,774 rental locations and has a fleet with an original equipment cost of about $23.8 billion.
The recent pullback comes as investors weigh robust demand against lingering profitability pressures. Large-project activity remains healthy, but higher fuel and delivery costs, fleet repositioning expenses and a greater mix of lower-margin ancillary and re-rent revenues are creating margin headwinds. Meanwhile, United Rentals is stepping up fleet investment to meet stronger demand, increasing capital requirements even as management remains focused on capital efficiency. These factors make it important to assess whether URI’s recent correction offers an attractive entry point or warrants continued caution.
URI’s One-Month Price Performance
Image Source: Zacks Investment Research
Over the past month, URI underperformed Gibraltar Industries, Inc. (ROCK - Free Report) , which declined 5.3%, but fared better than Everus Construction Group, Inc. (ECG - Free Report) and Argan, Inc. (AGX - Free Report) , which fell 22.4% and 33.4%, respectively.
United Rentals’ Growth Strategy Remains Intact Despite Margin PressuresDespite near-term margin pressures, United Rentals continues to demonstrate healthy underlying demand. Large projects remain a key growth engine, with strength across nonresidential construction, infrastructure and industrial markets. Power remains an important source of growth, while data centers, hospitals, airports and LNG terminals are also supporting activity. Management indicated that large projects drove first-half demand and expects that momentum to continue through the second half.
Fleet expansion and Specialty growth provide additional opportunities. Historically high time utilization has prompted United Rentals to add fleet capacity to meet stronger customer demand. In the second quarter, Specialty equipment rental revenues jumped 24.8% year over year compared with 6.6% growth in General Rentals. Management also raised its 2026 revenue, adjusted EBITDA and operating cash flow outlooks, reflecting stronger-than-expected demand, large-project activity and customer backlogs.
United Rentals’ Scale and Cash Flow Strength Support ReturnsUnited Rentals’ scale, broad fleet and diversified rental platform remain important competitive advantages. Second-quarter revenues reached a record $4.41 billion, while adjusted EBITDA increased 13.6% to $2.06 billion. Adjusted EPS came in at $12.76, while fleet productivity increased 3.4%, reflecting the combined impact of rental rates, time utilization and mix.
Cash generation also remains a key strength. Operating cash flow increased 20.1% year over year to $3.31 billion during the first six months of 2026, while free cash flow totaled $1.15 billion despite elevated fleet investment. United Rentals ended June with a net leverage ratio of 1.8 times and nearly $3 billion of liquidity, providing considerable flexibility to fund growth and return capital to shareholders.
The company returned $998 million to shareholders during the first half, comprising $750 million of share repurchases and $248 million of dividends. Management continues to target $1.5 billion of share repurchases for 2026, while maintaining its full-year free cash flow outlook of $2.15-$2.45 billion.
United Rentals Faces Margin and Cost PressuresDespite strong top-line momentum, profitability faces some near-term pressure. Excluding the gain from the sale of part of its scaffolding business, second-quarter adjusted EBITDA margin declined 40 basis points year over year. Specialty Rentals gross margin fell 140 basis points, primarily because lower-margin ancillary and re-rent revenues grew faster and altered the revenue mix.
United Rentals is also navigating inflation, higher fuel and delivery costs, and fleet repositioning expenses associated with supporting large projects. Although management has made progress on cost control, these factors could continue to create margin variability. The company has also increased fleet spending to meet stronger demand, raising 2026 gross rental capital expenditure guidance to $4.85-$5.25 billion from $4.4-$4.8 billion.
Higher capital requirements could limit incremental free cash flow upside even as operating cash generation improves. Continued execution on pricing, fleet productivity, cost efficiencies and capital discipline will therefore be important for United Rentals to translate robust demand into sustainable earnings and cash flow growth.
Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved upward over the past seven days to $48.70 and $56.04 per share, respectively. The revised estimates imply year-over-year earnings growth of 15.8% and 15.1%, respectively.
Image Source: Zacks Investment Research
Meanwhile, Gibraltar’s earnings are expected to decline 2% in the current year, while Everus Construction Group and Argan are projected to deliver year-over-year earnings growth of 32.9% and 39.2%, respectively.
URI Stock Trades at a PremiumURI stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings ratio of 18.44, as the trend lines below suggest. The premium indicates that investors continue to assign value to United Rentals’ scale, market leadership, strong cash generation and growth prospects. However, despite the recent share-price correction, the valuation does not necessarily point to a deeply discounted entry level, making earnings growth and execution increasingly important in determining further upside.
URI P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Wrapping UpUnited Rentals’ long-term growth prospects remain supported by robust large-project demand, strength across nonresidential construction, infrastructure and industrial markets, and continued expansion in Specialty rentals. Healthy fleet productivity, strong cash generation and disciplined capital allocation provide additional support. However, margin pressure from lower-margin ancillary and re-rent revenues, higher fuel and delivery costs, fleet repositioning expenses and elevated capital spending remain near-term concerns. URI also trades at a premium valuation relative to industry peers, which raises the execution bar. At the same time, earnings estimates for both 2026 and 2027 have moved higher, supporting confidence in the company’s earnings trajectory.
Overall, strong demand visibility, positive earnings revisions and healthy free cash flow argue against a bearish stance. The recent pullback may offer a more attractive entry point for investors willing to look past near-term margin pressures.
URI stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 20.8; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.85 to $48.55 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URI should be on investors' short list.
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) today announced that it will participate in the Morgan Stanley 14th Annual Laguna Conference on Tuesday, September 15, 2026. The conference will include a presentation by Matt Flannery, chief executive officer and Ted Grace, chief financial officer. The presentation is scheduled to begin at 2:35 p.m. PDT and will be available via the following link: https://cc.webcasts.com/morg007/091526a_js/?entity=18_HV4PEB2. About United Rent.
California State Teachers Retirement System lifted its stake in shares of United Rentals, Inc. (NYSE:URI – Free Report) by 110,181.2% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 110,282,310 shares of the construction company’s stock after acquiring an additional 110,182,309 shares during the quarter. California State Teachers Retirement System owned about 177.19% of United Rentals worth $124,937,726,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in United Rentals in the second quarter worth about $5,816,326,000. Norges Bank bought a new position in shares of United Rentals during the 4th quarter valued at about $978,017,000. Bank of America Corp DE acquired a new position in shares of United Rentals in the 2nd quarter worth approximately $944,196,000. The Manufacturers Life Insurance Company bought a new stake in shares of United Rentals in the 2nd quarter worth approximately $716,129,000. Finally, Bank of New York Mellon Corp acquired a new stake in United Rentals during the second quarter valued at approximately $412,860,000. Institutional investors own 96.26% of the company’s stock.
Analyst Upgrades and Downgrades URI has been the topic of several research reports. Barclays upped their price target on United Rentals from $715.00 to $950.00 and gave the company an “underweight” rating in a report on Friday, July 24th. Argus restated a “buy” rating and issued a $1,250.00 target price on shares of United Rentals in a report on Tuesday, August 4th. BNP Paribas Exane raised United Rentals from a “neutral” rating to an “outperform” rating and set a $1,320.00 target price on the stock in a research report on Monday, June 29th. Citigroup upped their target price on United Rentals from $1,270.00 to $1,330.00 and gave the company a “buy” rating in a report on Friday, July 24th. Finally, Evercore reiterated an “outperform” rating and issued a $1,101.00 price target on shares of United Rentals in a research report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,246.19.
Get Our Latest Analysis on United Rentals United Rentals Stock Down 0.0% United Rentals stock opened at $1,009.78 on Monday. The firm’s 50 day moving average price is $1,087.43 and its two-hundred day moving average price is $962.34. The firm has a market cap of $62.85 billion, a PE ratio of 24.25, a P/E/G ratio of 1.49 and a beta of 1.79. United Rentals, Inc. has a twelve month low of $701.59 and a twelve month high of $1,179.18. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76.
United Rentals (NYSE:URI – Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The construction company reported $12.76 EPS for the quarter, topping analysts’ consensus estimates of $11.53 by $1.23. The firm had revenue of $4.41 billion for the quarter, compared to the consensus estimate of $4.22 billion. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The firm’s revenue was up 11.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $10.47 earnings per share. On average, research analysts predict that United Rentals, Inc. will post 48.55 EPS for the current fiscal year.
United Rentals Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th were given a dividend of $1.97 per share. The ex-dividend date of this dividend was Wednesday, August 12th. This represents a $7.88 dividend on an annualized basis and a yield of 0.8%. United Rentals’s dividend payout ratio is presently 18.92%.
Insider Activity at United Rentals In other news, EVP William Grace sold 1,500 shares of the business’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the sale, the executive vice president directly owned 6,062 shares in the company, valued at approximately $6,869,155.30. The trade was a 19.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.47% of the stock is currently owned by corporate insiders.
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
Further Reading Five stocks we like better than United Rentals AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding URI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for United Rentals, Inc. (NYSE:URI – Free Report).
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. URI has a Growth Style Score of B, forecasting year-over-year earnings growth of 15.4% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.85 to $48.55 per share. URI also boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, URI should be on investors' short list.
Key Takeaways United Rentals is seeing stronger demand from infrastructure and other major projects.Fleet productivity rose 3.4%, while rental revenues climbed nearly 13% to $3.8 billion.United Rentals raised 2026 gross rental CapEx by $450 million to $4.85-$5.25 billion. United Rentals, Inc. (URI - Free Report) is seeing stronger demand from large infrastructure and other major projects, prompting it to increase fleet investment. In the second quarter of 2026, demand exceeded earlier expectations, with the project pipeline emerging as the main growth driver. Infrastructure, power, LNG terminals, airports, data centers and other large projects contributed to the broader demand environment.
The strong demand is also supporting high fleet utilization. Fleet productivity improved 3.4% in the second quarter, while rental revenues increased nearly 13% year over year to $3.8 billion. Time utilization reached historically high levels, giving the company confidence to add more equipment.
In response, United Rentals raised its 2026 gross rental CapEx outlook by $450 million to a range of $4.85-$5.25 billion. Year-to-date gross rental CapEx stood at $2.9 billion, up more than $650 million from the prior-year period. The additional fleet is being added to meet stronger customer demand rather than simply support near-term revenues.
The large-project pipeline is expected to remain strong into the second half of 2026, with project-related demand providing visibility into 2027. Supplier capacity remains tight in certain equipment categories, making advance planning important as United Rentals expands its fleet.
Overall, sustained infrastructure and large-project activity could remain an important factor behind fleet investment. If demand stays strong, higher fleet availability could allow United Rentals to capture additional rental opportunities while maintaining high utilization. This could also help the company support growth as major projects progress across several end markets.
Competitive Position: United Rentals vs. Armstrong World & MascoUnited Rentals operates across a broad industrial and infrastructure market alongside Armstrong World Industries, Inc. (AWI - Free Report) and Masco Corporation (MAS - Free Report) , which have exposure to construction and building products.
Armstrong World Industries provides ceiling, architectural specialty and interior solutions for commercial buildings. Its broad product portfolio, product differentiation and expansion into structural and containment solutions provide an advantage as demand grows across transportation and data center projects. However, Armstrong World Industries faces inflationary pressure from freight, energy and raw material costs, which could affect profitability.
Meanwhile, Masco operates across plumbing and decorative architectural products, with brands spanning kitchen, bath and premium water products. Masco’s strong brands, product innovation, e-commerce capabilities and customer service support its competitive position across multiple channels. However, softer international demand in markets such as China and pressure from strategic investments could weigh on near-term sales performance.
United Rentals’ one-stop-shop model, broad specialty offerings, technology and distributed footprint provide a competitive advantage in terms of customer service, fleet utilization and ability to serve large projects. However, competition could increase as industry utilization improves and smaller rental players use available capacity, while supply constraints may limit how quickly additional equipment can be added.
URI Stock’s Price Performance & Valuation TrendShares of this Connecticut-based equipment rental company climbed 25.4% in the past six months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 19.79, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvement of 15.4% and 14.7%, respectively.
Image Source: Zacks Investment Research
United Rentals currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beacon Pointe Advisors LLC purchased a new position in United Rentals, Inc. (NYSE:URI – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 7,165 shares of the construction company’s stock, valued at approximately $8,112,000.
Several other large investors also recently bought and sold shares of URI. Core Wealth Advisors LLC purchased a new stake in shares of United Rentals in the fourth quarter valued at about $28,000. MV Capital Management Inc. purchased a new stake in United Rentals in the fourth quarter valued at approximately $28,000. Clal Insurance Enterprises Holdings Ltd acquired a new position in United Rentals during the 2nd quarter worth about $29,000. MidFirst Bank acquired a new position in shares of United Rentals in the second quarter valued at approximately $31,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in shares of United Rentals during the fourth quarter worth $32,000. Hedge funds and other institutional investors own 96.26% of the company’s stock.
Insider Buying and Selling at United Rentals In other United Rentals news, EVP William E. Grace sold 1,500 shares of United Rentals stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total transaction of $1,699,725.00. Following the completion of the transaction, the executive vice president owned 6,062 shares in the company, valued at approximately $6,869,155.30. The trade was a 19.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.47% of the stock is currently owned by corporate insiders.
Analysts Set New Price Targets A number of equities research analysts have commented on the stock. BNP Paribas Exane raised shares of United Rentals from a “neutral” rating to an “outperform” rating and set a $1,320.00 price objective on the stock in a research report on Monday, June 29th. Weiss Ratings raised United Rentals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 23rd. Zacks Research upgraded United Rentals from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Raymond James Financial reissued an “outperform” rating and set a $1,275.00 price objective on shares of United Rentals in a report on Wednesday, June 10th. Finally, Bank of America upped their target price on shares of United Rentals from $1,195.00 to $1,300.00 and gave the company a “buy” rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, United Rentals presently has an average rating of “Moderate Buy” and an average target price of $1,246.19. Get Our Latest Research Report on URI
United Rentals Trading Down 0.7% Shares of URI stock opened at $1,030.64 on Friday. The company has a market capitalization of $64.15 billion, a P/E ratio of 24.75, a price-to-earnings-growth ratio of 1.34 and a beta of 1.80. The company has a current ratio of 0.76, a quick ratio of 0.70 and a debt-to-equity ratio of 1.38. The business’s 50 day moving average is $1,097.31 and its two-hundred day moving average is $957.16. United Rentals, Inc. has a twelve month low of $701.59 and a twelve month high of $1,179.18.
United Rentals (NYSE:URI – Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The construction company reported $12.76 EPS for the quarter, topping the consensus estimate of $11.53 by $1.23. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The business had revenue of $4.41 billion during the quarter, compared to analysts’ expectations of $4.22 billion. During the same quarter in the prior year, the business earned $10.47 earnings per share. The company’s quarterly revenue was up 11.8% compared to the same quarter last year. Equities analysts forecast that United Rentals, Inc. will post 48.55 EPS for the current year.
United Rentals Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th were given a dividend of $1.97 per share. This represents a $7.88 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Wednesday, August 12th. United Rentals’s payout ratio is presently 18.92%.
United Rentals Company Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
Further Reading Five stocks we like better than United Rentals 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?
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Archer Investment Corp acquired a new stake in shares of United Rentals, Inc. (NYSE:URI – Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 1,011 shares of the construction company’s stock, valued at approximately $1,146,000.
A number of other institutional investors have also recently added to or reduced their stakes in URI. BlackRock Inc. acquired a new stake in shares of United Rentals in the second quarter valued at approximately $5,816,326,000. Capital World Investors boosted its position in shares of United Rentals by 1.1% during the fourth quarter. Capital World Investors now owns 2,708,877 shares of the construction company’s stock worth $2,192,357,000 after buying an additional 30,263 shares during the period. Franklin Resources Inc. grew its holdings in United Rentals by 2.2% in the 4th quarter. Franklin Resources Inc. now owns 1,343,981 shares of the construction company’s stock worth $1,087,711,000 after buying an additional 28,895 shares in the last quarter. Norges Bank bought a new position in United Rentals in the 4th quarter worth approximately $978,017,000. Finally, Bank of America Corp DE acquired a new stake in United Rentals in the 2nd quarter valued at approximately $944,196,000. 96.26% of the stock is currently owned by institutional investors.
Insiders Place Their Bets In other United Rentals news, EVP William E. Grace sold 1,500 shares of the business’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total transaction of $1,699,725.00. Following the sale, the executive vice president directly owned 6,062 shares of the company’s stock, valued at $6,869,155.30. The trade was a 19.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.47% of the company’s stock.
United Rentals Price Performance NYSE URI opened at $1,030.64 on Friday. United Rentals, Inc. has a 1 year low of $701.59 and a 1 year high of $1,179.18. The business’s fifty day moving average is $1,097.31 and its two-hundred day moving average is $957.16. The stock has a market capitalization of $64.15 billion, a P/E ratio of 24.75, a P/E/G ratio of 1.34 and a beta of 1.80. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76. United Rentals (NYSE:URI – Get Free Report) last announced its earnings results on Tuesday, July 21st. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $11.53 by $1.23. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The company had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same period in the previous year, the firm earned $10.47 earnings per share. United Rentals’s revenue for the quarter was up 11.8% compared to the same quarter last year. On average, research analysts forecast that United Rentals, Inc. will post 48.55 earnings per share for the current fiscal year.
United Rentals Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th were given a dividend of $1.97 per share. This represents a $7.88 annualized dividend and a yield of 0.8%. The ex-dividend date was Wednesday, August 12th. United Rentals’s payout ratio is presently 18.92%.
Analyst Ratings Changes Several equities research analysts recently weighed in on URI shares. KeyCorp reaffirmed an “overweight” rating and issued a $1,350.00 price objective on shares of United Rentals in a report on Friday, July 24th. Citigroup raised their target price on shares of United Rentals from $1,270.00 to $1,330.00 and gave the company a “buy” rating in a research note on Friday, July 24th. JPMorgan Chase & Co. upped their price target on shares of United Rentals from $1,100.00 to $1,235.00 and gave the stock an “overweight” rating in a research note on Friday, July 24th. BNP Paribas Exane upgraded shares of United Rentals from a “neutral” rating to an “outperform” rating and set a $1,320.00 price objective for the company in a report on Monday, June 29th. Finally, Weiss Ratings upgraded shares of United Rentals from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $1,246.19.
Get Our Latest Stock Report on URI
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
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A month has gone by since the last earnings report for United Rentals (URI - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is United Rentals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
United Rentals Q2 Earnings Beat on Rental Growth, '26 Guidance RaisedUnited Rentals reported solid second-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year.
Record rental revenues, higher fleet productivity and robust specialty demand supported the results. Fleet productivity improved 3.4% year over year.
URI's Q2 Earnings & RevenuesURI posted adjusted earnings of $12.76 per share, up 21.9% from $10.47 a year ago and surpassing the Zacks Consensus Estimate of $11.67 by 9.3%.
Total revenues advanced 11.8% to $4.41 billion and topped the consensus mark of $4.24 billion by 4.1%.
URI’s Rental Revenues Reach a Quarterly RecordRental revenues increased 12.7% year over year to a quarterly record of $3.85 billion. Average original equipment at cost, or OEC, rose 7.1%.
Owned equipment rental revenues increased 9% to $2.99 billion from $2.75 billion. Re-rent revenues rose 46.7% to $88 million, while ancillary and other rental revenues advanced 26.2% to $770 million.
Sales of rental equipment increased 4.1% to $330 million. Sales of new equipment rose 14.7% to $86 million, contractor supplies sales increased 7.3% to $44 million and service and other revenues grew 6.3% to $101 million.
United Rentals Sees Specialty Growth AccelerateGeneral Rentals segment equipment rental revenues increased 6.6% year over year to $2.42 billion. Equipment rental gross profit rose 8.7% to $865 million, while gross margin expanded 70 basis points to 35.8%.
Specialty segment equipment rental revenues rose 24.8% to $1.43 billion. Gross profit increased 21.1% to $636 million, but gross margin contracted 140 basis points to 44.4%. The decline reflected a revenue mix shift toward lower-margin ancillary and re-rent revenues, partly offset by lower labor and benefit expenses as a percentage of revenues.
United Rentals' Profitability ImprovesGross profit increased to $1.73 billion from $1.53 billion. The gross margin improved to 39.3% from 38.9%, as revenue growth outpaced the increase in cost of revenues.
Adjusted EBITDA rose 13.6% to a quarterly record of $2.06 billion. The adjusted EBITDA margin expanded 70 basis points to 46.6%, including a $49 million gain from the sale of part of the scaffolding business. Excluding that gain, the margin declined 40 basis points due mainly to the Specialty Rentals mix pressure.
Net income increased 21.1% to a second-quarter record of $753 million. Net income margin expanded 130 basis points to 17.1%, including a $37 million after-tax benefit from the scaffolding transaction.
United Rentals Maintains Financial FlexibilityFor the first six months of 2026, net cash provided by operating activities increased 20.1% to $3.31 billion. Free cash flow declined 4.1% to $1.15 billion, including restructuring-related payments and gross rental equipment purchases of $2.72 billion.
URI ended June with liquidity of $3 billion, including $112 million in cash and equivalents. Its net leverage ratio improved to 1.8x from 1.9x at the end of 2025.
The company returned $998 million to its shareholders during the first half of 2026, comprising $750 million in share repurchases and $248 million in dividends. United Rentals expects to repurchase $1.5 billion of shares in 2026 and declared a quarterly dividend of $1.97 per share.
URI Raises Key 2026 Guidance RangesManagement raised its 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion. The adjusted EBITDA forecast increased to $7.98-$8.13 billion from $7.63-$7.88 billion.
United Rentals now expects net cash provided by operating activities of $5.85-$6.65 billion, compared with the prior projection of $5.4-$6.2 billion. The free cash flow outlook, excluding restructuring-related payments, was maintained at $2.15-$2.45 billion.
Net rental capital expenditures are projected at $3.4-$3.8 billion after gross purchases of $4.85-$5.25 billion. Management cited large-project activity, customer backlogs and year-to-date momentum as factors supporting the higher outlook.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, United Rentals has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise United Rentals has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Advisors Capital Management LLC purchased a new position in United Rentals, Inc. (NYSE:URI – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 32,182 shares of the construction company’s stock, valued at approximately $36,459,000. Advisors Capital Management LLC owned approximately 0.05% of United Rentals as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of United Rentals during the second quarter valued at $5,816,326,000. Capital World Investors grew its position in United Rentals by 1.1% during the 4th quarter. Capital World Investors now owns 2,708,877 shares of the construction company’s stock valued at $2,192,357,000 after purchasing an additional 30,263 shares during the last quarter. Franklin Resources Inc. increased its stake in United Rentals by 2.2% during the 4th quarter. Franklin Resources Inc. now owns 1,343,981 shares of the construction company’s stock valued at $1,087,711,000 after purchasing an additional 28,895 shares in the last quarter. Norges Bank purchased a new position in United Rentals in the fourth quarter worth about $978,017,000. Finally, Bank of America Corp DE raised its holdings in United Rentals by 14.7% in the first quarter. Bank of America Corp DE now owns 806,380 shares of the construction company’s stock worth $587,496,000 after buying an additional 103,371 shares during the last quarter. Hedge funds and other institutional investors own 96.26% of the company’s stock.
Analyst Upgrades and Downgrades URI has been the subject of several analyst reports. Robert W. Baird set a $1,300.00 price target on shares of United Rentals in a research report on Friday, July 24th. Evercore reaffirmed an “outperform” rating and issued a $1,101.00 price objective on shares of United Rentals in a research report on Monday, May 11th. Bank of America increased their target price on United Rentals from $1,195.00 to $1,300.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. Raymond James Financial restated an “outperform” rating and issued a $1,275.00 price target on shares of United Rentals in a research note on Wednesday, June 10th. Finally, Morgan Stanley set a $1,335.00 price target on United Rentals and gave the company an “overweight” rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $1,246.19.
Get Our Latest Report on United Rentals Insider Buying and Selling at United Rentals In other news, EVP William E. Grace sold 1,500 shares of the company’s stock in a transaction on Friday, July 24th. The stock was sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the sale, the executive vice president directly owned 6,062 shares in the company, valued at $6,869,155.30. This represents a 19.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.47% of the stock is owned by corporate insiders.
United Rentals Trading Down 2.0% Shares of NYSE:URI opened at $1,094.54 on Friday. The stock has a market capitalization of $68.12 billion, a price-to-earnings ratio of 26.29, a PEG ratio of 1.44 and a beta of 1.80. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76. The stock’s 50-day simple moving average is $1,098.84 and its two-hundred day simple moving average is $948.49. United Rentals, Inc. has a 52-week low of $701.59 and a 52-week high of $1,179.18.
United Rentals (NYSE:URI – Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The construction company reported $12.76 EPS for the quarter, beating the consensus estimate of $11.53 by $1.23. United Rentals had a net margin of 15.67% and a return on equity of 31.72%. The firm had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same quarter in the prior year, the firm earned $10.47 EPS. The business’s revenue for the quarter was up 11.8% compared to the same quarter last year. Analysts expect that United Rentals, Inc. will post 48.55 EPS for the current year.
United Rentals Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th will be given a $1.97 dividend. The ex-dividend date is Wednesday, August 12th. This represents a $7.88 annualized dividend and a yield of 0.7%. United Rentals’s dividend payout ratio (DPR) is presently 18.92%.
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
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August Group Capital Ltd acquired a new stake in shares of United Rentals, Inc. (NYSE:URI – Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 863 shares of the construction company’s stock, valued at approximately $977,000. United Rentals makes up about 1.1% of August Group Capital Ltd’s investment portfolio, making the stock its 23rd largest position.
A number of other large investors also recently bought and sold shares of URI. E Fund Management Co. Ltd. purchased a new position in shares of United Rentals in the 2nd quarter valued at $268,000. Westport Asset Management Inc. purchased a new stake in shares of United Rentals during the 2nd quarter worth $9,063,000. Frazier Financial Advisors LLC bought a new stake in United Rentals during the second quarter valued at about $63,000. Johnson Financial Group Inc. bought a new stake in United Rentals during the second quarter valued at about $120,000. Finally, West Family Investments Inc. purchased a new position in United Rentals in the second quarter valued at about $265,000. Institutional investors own 96.26% of the company’s stock.
Wall Street Analyst Weigh In A number of brokerages have commented on URI. Wall Street Zen upgraded shares of United Rentals from a “hold” rating to a “buy” rating in a report on Saturday, July 25th. Truist Financial raised their price target on shares of United Rentals from $1,421.00 to $1,466.00 and gave the company a “buy” rating in a report on Friday, July 24th. KeyCorp reaffirmed an “overweight” rating and issued a $1,350.00 price objective on shares of United Rentals in a research report on Friday, July 24th. Barclays boosted their price objective on shares of United Rentals from $715.00 to $950.00 and gave the stock an “underweight” rating in a research note on Friday, July 24th. Finally, Royal Bank Of Canada raised their target price on shares of United Rentals from $1,041.00 to $1,119.00 and gave the company an “outperform” rating in a research note on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,246.19.
View Our Latest Research Report on United Rentals United Rentals Trading Down 0.0% United Rentals stock opened at $1,116.17 on Thursday. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76. The stock has a market cap of $69.47 billion, a PE ratio of 26.81, a price-to-earnings-growth ratio of 1.44 and a beta of 1.80. The stock has a 50-day moving average of $1,098.29 and a two-hundred day moving average of $946.28. United Rentals, Inc. has a one year low of $701.59 and a one year high of $1,179.18.
United Rentals (NYSE:URI – Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The construction company reported $12.76 earnings per share for the quarter, topping analysts’ consensus estimates of $11.53 by $1.23. The business had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The company’s revenue was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $10.47 earnings per share. On average, research analysts anticipate that United Rentals, Inc. will post 48.55 EPS for the current fiscal year.
United Rentals Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th will be paid a dividend of $1.97 per share. The ex-dividend date is Wednesday, August 12th. This represents a $7.88 dividend on an annualized basis and a yield of 0.7%. United Rentals’s dividend payout ratio is presently 18.92%.
Insider Activity In other United Rentals news, EVP William E. Grace sold 1,500 shares of the firm’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the transaction, the executive vice president owned 6,062 shares of the company’s stock, valued at approximately $6,869,155.30. This trade represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.47% of the company’s stock.
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
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Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. URI has a Growth Style Score of B, forecasting year-over-year earnings growth of 15.4% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.30 to $48.55 per share. URI also boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, URI should be on investors' short list.
Key Takeaways United Rentals says 90% of current growth is organic, with M&A still part of its longer-term strategy.URI's Q2 rental revenues rose 12.7% to a record $3.85B, while specialty rental revenues jumped 24.8%.URI has nearly $3B of liquidity and 1.8x net leverage, providing financial flexibility to pursue deals. United Rentals, Inc.’s (URI - Free Report) growth story is currently being powered overwhelmingly by organic expansion, but mergers and acquisitions remain an important component of its longer-term strategy. Management noted on the second-quarter earnings call that roughly 90%+ of the company’s current growth is organic. At the same time, CEO Matthew Flannery described the acquisition pipeline as robust and said URI continues to evaluate opportunities of different sizes, particularly those that can add products or strengthen specialty offerings.
The strength of the organic business was evident in the second quarter of 2026. Rental revenues increased 12.7% year over year to a quarterly record of $3.85 billion, supported by a 7.1% increase in average fleet size and 3.4% fleet productivity. Specialty rental revenues climbed 24.8% to $1.43 billion, compared with 6.6% growth in General Rentals. Specialty could also remain a focus for future acquisitions. The business accounted for roughly 37% of United Rentals’ total revenues in 2025, up from 16% in 2015, while specialty revenues recorded a 20.2% CAGR over the 2015-2025 period.
Still, strong organic growth does not make acquisitions irrelevant. M&A has historically helped United Rentals broaden both its geographic reach and product portfolio. The company cited the 2024 acquisition of Yak as an example of expanding adjacent specialty offerings, while the acquisition of Ahern Rentals in 2022 strengthened its core rental operations. URI continues to characterize strategic acquisitions as a way to expand the business and support its broader strategic objectives. With net leverage at 1.8x and nearly $3 billion of liquidity, URI has ample financial flexibility to pursue deals.
Overall, M&A looks more like an accelerator than a necessity. Strong organic growth gives URI room to remain selective, while targeted acquisitions could still enhance its specialty portfolio and strengthen its one-stop-shop strategy.
United Rentals, Gibraltar and Masco: Who Has the Better Growth Mix?United Rentals appears to have the strongest organic growth profile compared with Gibraltar Industries, Inc. (ROCK - Free Report) and Masco Corporation (MAS - Free Report) . URI management said more than 90% of its current growth is organic, while maintaining a robust M&A pipeline focused partly on adding products and strengthening specialty offerings.
Gibraltar’s recent growth is more acquisition-assisted. Second-quarter 2026 sales surged 64.6% to $510 million following the OmniMax acquisition, while companywide organic growth was 5%. The combination is producing benefits, with management raising its 2026 synergy commitment to $29.4 million of executed savings. However, Gibraltar ended the quarter at 3.9x net leverage and has made debt reduction its priority over the next 12-18 months, potentially limiting near-term acquisition flexibility.
Masco presents a more balanced capital-allocation picture. Second-quarter 2026 sales declined 3%, although underlying sales were roughly flat excluding targeted strategic investments. The company ended the quarter with 2.1x gross debt-to-EBITDA and $1.5 billion of liquidity, and now expects to deploy about $1 billion toward share repurchases or acquisitions in 2026.
Overall, URI appears least dependent on M&A to sustain growth. Gibraltar is focused on extracting value from OmniMax and deleveraging, while Masco retains acquisition capacity but is also prioritizing organic investments and shareholder returns. For URI, selective deals could complement an already strong organic growth engine rather than create it.
URI Stock’s Price Performance & Valuation TrendShares of this Connecticut-based equipment rental company climbed 42.6% in the year-to-date (YTD) period, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.
URI YTD Share Price Performance
Image Source: Zacks Investment Research
URI Valuation
URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.75, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvement of 9.6% and 15.4%, respectively.
Image Source: Zacks Investment Research
URI’s Zacks RankUnited Rentals currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When a stock reaches a certain price, some will worry that the buying pool becomes more limited, as retail investors may feel priced out. Often, when a stock hits $1,000 per share, that seems to be a psychological price level at which more shareholders start wondering whether a stock split is on the horizon.
With the United Rentals (URI +0.48%) stock opening at $1,123.36 on Aug. 14, the world's largest equipment rental company seems like a candidate for a split.
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Will a United Rentals stock split happen in 2026? United Rentals recently posted strong results for its 2026 second-quarter earnings, raising its 2026 revenue forecast from $16.9 billion to $17.4 billion to $17.5 billion to $17.8 billion. The stock price is also performing well, climbing 42% thus far in 2026 and trading near its 52-week high of $1,179.18.
The stock price has strong momentum, which could help propel it to set a new 52-week high. And if that price keeps rising, it will have investors wondering even more about whether a stock split is on the table.
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Why a split isn't a guarantee to happen Shareholders may worry that a stock won't attract new investors to push the price higher if it's at a certain level. In comparison, a management team may view a higher stock price as a sign of strength. Even if the stock is over $1,000, United could argue that demand is still growing.
By not completing a stock split, United saves time, money, and resources on legal fees and paperwork. But it also helps deter those who may be buying the stock solely because they believe it will receive more attention, with that increased attention creating a short-term profit opportunity.
A United Rental stock split is still possible before the end of the year. But if demand looks healthy and the stock price keeps climbing, there's little incentive for the management team to conduct one.
Fielder Capital Group LLC bought a new position in shares of United Rentals, Inc. (NYSE:URI – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 552 shares of the construction company’s stock, valued at approximately $625,000.
Other hedge funds also recently modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. increased its stake in United Rentals by 18.6% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 11,756 shares of the construction company’s stock valued at $9,514,000 after acquiring an additional 1,846 shares during the last quarter. Eventide Asset Management LLC raised its position in United Rentals by 19.6% during the fourth quarter. Eventide Asset Management LLC now owns 95,940 shares of the construction company’s stock valued at $77,666,000 after purchasing an additional 15,696 shares in the last quarter. Sequoia Financial Advisors LLC lifted its stake in United Rentals by 52.0% during the fourth quarter. Sequoia Financial Advisors LLC now owns 3,241 shares of the construction company’s stock worth $2,623,000 after purchasing an additional 1,109 shares during the last quarter. Bridges Investment Management Inc. boosted its holdings in shares of United Rentals by 2.0% in the 4th quarter. Bridges Investment Management Inc. now owns 69,583 shares of the construction company’s stock valued at $56,315,000 after purchasing an additional 1,354 shares in the last quarter. Finally, WINTON GROUP Ltd boosted its holdings in shares of United Rentals by 995.1% in the 4th quarter. WINTON GROUP Ltd now owns 13,612 shares of the construction company’s stock valued at $11,016,000 after purchasing an additional 12,369 shares in the last quarter. Institutional investors own 96.26% of the company’s stock.
Analyst Ratings Changes Several equities analysts have recently issued reports on URI shares. Citigroup lifted their price target on United Rentals from $1,270.00 to $1,330.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Royal Bank Of Canada upped their price objective on United Rentals from $1,041.00 to $1,119.00 and gave the stock an “outperform” rating in a research report on Friday, April 24th. Bank of America raised their price objective on United Rentals from $1,195.00 to $1,300.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. Wells Fargo & Company lifted their target price on United Rentals from $1,245.00 to $1,355.00 and gave the company an “overweight” rating in a research report on Friday, July 24th. Finally, Truist Financial boosted their target price on United Rentals from $1,421.00 to $1,466.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $1,246.19.
Get Our Latest Stock Analysis on URI Insider Activity In other United Rentals news, EVP William E. Grace sold 1,500 shares of the firm’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the sale, the executive vice president directly owned 6,062 shares in the company, valued at approximately $6,869,155.30. This trade represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.47% of the company’s stock.
United Rentals Stock Performance URI stock opened at $1,155.25 on Monday. The firm has a market cap of $71.90 billion, a PE ratio of 27.74, a price-to-earnings-growth ratio of 1.49 and a beta of 1.80. The company has a current ratio of 0.76, a quick ratio of 0.70 and a debt-to-equity ratio of 1.38. The stock has a 50-day moving average price of $1,095.03 and a 200-day moving average price of $940.62. United Rentals, Inc. has a 1-year low of $701.59 and a 1-year high of $1,179.18.
United Rentals (NYSE:URI – Get Free Report) last announced its earnings results on Tuesday, July 21st. The construction company reported $12.76 EPS for the quarter, beating the consensus estimate of $11.53 by $1.23. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The company had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same quarter in the prior year, the company earned $10.47 EPS. The firm’s revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, equities research analysts expect that United Rentals, Inc. will post 48.55 earnings per share for the current year.
United Rentals Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th will be issued a dividend of $1.97 per share. This represents a $7.88 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Wednesday, August 12th. United Rentals’s dividend payout ratio is presently 18.92%.
About United Rentals (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
Further Reading Five stocks we like better than United Rentals The Metals Company’s Big Bet Now Comes Down to a License OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings Meta and Tesla Are Rebounding From Oversold Levels—Now What? AMG’s Alternatives Boom Powers Record Growth Want to see what other hedge funds are holding URI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for United Rentals, Inc. (NYSE:URI – Free Report).
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Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 23.08; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.30 to $48.55 per share. URI boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URI should be on investors' short list.
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Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: United Rentals (URI - Free Report) Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world. As of June 30, 2026, it operated a branch network of 1,774 global locations, including 1,665 in North America, with a smaller presence in Europe, Australia and New Zealand. In North America, the company operates in 49 U.S. states and every Canadian province. The rental fleet had a total original equipment cost (“OEC”) of $23.8 billion as of June 30, 2026, and the company offers approximately 4,800 classes of equipment for rent on an hourly, daily, weekly, or monthly basis. Equipment rentals represented 86% of total revenues in 2025.
URI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Construction stock. URI has a Momentum Style Score of A, and shares are up 7.8% over the past four weeks.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.30 to $48.55 per share. URI also boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URI should be on investors' short list.
Key Takeaways United Rentals posted record rental revenues, with the metric rising 12% year over year in Q2.Specialty rental revenues jumped 25%, while strong project activity lifted 2026 revenue guidance.Higher fleet investment and strong cash generation support growth and shareholder returns. United Rentals, Inc. (URI - Free Report) reported solid second-quarter 2026 results, with both adjusted earnings and revenues exceeding the Zacks Consensus Estimate by 9.3% and 4.1%, respectively. The company also delivered strong year-over-year growth across key metrics. Record rental revenues, higher fleet productivity and strong specialty demand supported the performance. Shares of United Rentals have gained 10.4% since the earnings release, reflecting positive investor sentiment toward its strong rental demand and raised 2026 guidance.
Digging Deeper Into United Rentals’ Q2 ResultsAdjusted earnings per share stood at $12.76, up 21.9% from the prior-year quarter, while revenues of $4.41 billion increased 11.8%. This growth was driven by record rental revenues, higher fleet productivity and strong specialty demand. Operating margin in the quarter was supported by higher revenue growth and fleet productivity, while adjusted EBITDA increased 13.6% year over year to a quarterly record of $2.06 billion.
Furthermore, United Rentals raised its 2026 revenue and adjusted EBITDA guidance, backed by strong large-project activity, customer backlogs and higher fleet utilization. (read more: United Rentals Q2 Earnings Beat on Rental Growth, '26 Guidance Raised)
URI Stock Outperforms Peers, the Industry & the Market
Image Source: Zacks Investment Research
Shares of this Connecticut-based equipment rental company have surged 22.3% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index. Let us take a closer look at the factors shaping United Rentals stock’s prospects.
Strong Demand Supports URI’s Revenue VisibilityUnited Rentals is benefiting from stronger-than-expected customer demand, particularly across large projects. In the second quarter of 2026, total revenues increased 12% year over year to $4.4 billion, while rental revenues rose nearly 13% to a record $3.8 billion. Fleet productivity increased 3.4%, contributing to 9% growth in OER. Strong project activity during the first half also led the company to raise its 2026 revenue guidance to $17.5-$17.8 billion, up $500 million from the previous range.
The demand environment remains supported by large projects, which are expected to drive activity through the second half of 2026. The company is also seeing growth across construction and industrial markets, providing a broader base for rental demand. Higher project activity, combined with strong fleet utilization, should support revenue generation as the company enters the second half of the year.
Specialty Expansion Broadens URI’s Rental OpportunitiesUnited Rentals is gaining traction across its Specialty business, creating additional avenues for rental revenue growth. In the second quarter of 2026, Specialty rental revenues increased 25% year over year, with growth across all lines of business and 11 cold starts. Power posted double-digit growth, while metals and minerals also delivered healthy gains during the quarter.
The broad performance across Specialty strengthens United Rentals’ exposure to customers requiring more specialized equipment and services. Demand across power, infrastructure and other project-driven markets should provide opportunities to expand the business as customers undertake increasingly complex projects.
Diversified End Markets Strengthen URI’s Project ExposureUnited Rentals is benefiting from activity across a wide range of end markets rather than relying on a single source of demand. During the second quarter, projects began across hospitals, airports and LNG terminals, while data centers remained a source of growth. Construction activity was led by nonresidential and infrastructure projects, while power also delivered double-digit growth within the industrial business.
This diversified exposure provides a broader foundation for rental demand as project activity expands across different parts of the economy. Large infrastructure and industrial projects can also support demand for both general rental equipment and specialized products, allowing United Rentals to participate across multiple stages of project development.
Higher Fleet Investment Positions URI to Capture DemandUnited Rentals is increasing fleet investment to meet customer requirements as equipment utilization remains elevated. The company spent $2.9 billion on gross rental CapEx through the first half of 2026, more than $650 million above the prior-year period. Full-year gross CapEx guidance was raised $450 million to $4.85-$5.25 billion.
The higher investment should expand equipment availability as United Rentals responds to stronger project demand. The company expects historically high utilization levels to support the need for additional fleet, while continued investment should help it serve customers without relying solely on existing equipment capacity.
Strong Cash Generation Supports URI’s Financial FlexibilityUnited Rentals is generating significant cash while maintaining a disciplined approach to capital allocation. Free cash flow totaled roughly $1.15 billion year to date, while net leverage remained at 1.8x and total liquidity stood at almost $3 billion at the end of June. The company also returned $998 million to its shareholders through the first half, including $750 million in share repurchases and $248 million in dividends.
Financial flexibility gives United Rentals capacity to fund fleet expansion while maintaining shareholder returns. The company expects 2026 free cash flow of $2.15-$2.45 billion and plans to return roughly $2 billion to its shareholders through repurchases and dividends, supporting capital allocation while preserving flexibility for growth opportunities.
Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvements of 15.4% and 14.7%, respectively.
Image Source: Zacks Investment Research
URI Stock Trading at a PremiumURI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.6, as the trend lines suggest below.
Image Source: Zacks Investment Research
Competitive Position: United Rentals vs. Armstrong World, Argan & MascoUnited Rentals operates across a broad industrial and infrastructure market alongside Armstrong World Industries, Inc. (AWI - Free Report) , Masco Corporation (MAS - Free Report) and Argan, Inc. (AGX - Free Report) , which have exposure to construction, building products and infrastructure spending.
Armstrong World Industries provides ceiling, architectural specialty and interior solutions for commercial buildings. Its broad product portfolio, product differentiation and expansion into structural and containment solutions provide an advantage as demand grows across transportation and data center projects. However, the company faces inflationary pressure from freight, energy and raw material costs, which could affect profitability.
Meanwhile, Masco operates across plumbing and decorative architectural products, with brands spanning kitchen, bath and premium water products. Masco’s strong brands, product innovation, e-commerce capabilities and customer service support its competitive position across multiple channels. However, softer international demand in markets such as China and pressure from strategic investments could weigh on near-term sales performance.
Conversely, Argan provides engineering, procurement and construction services across power, industrial and Teledata markets. Argan’s experience with complex power projects, strong execution record and ability to handle large fixed-price contracts provide an advantage in an environment of rising power infrastructure demand. However, project timing can cause fluctuations in backlog and revenues, with gaps possible between the completion of projects and the award of new contracts.
United Rentals’ one-stop-shop model, broad specialty offerings, technology and distributed footprint provide a competitive advantage in terms of customer service, fleet utilization and ability to serve large projects. However, competition could increase as industry utilization improves and smaller rental players use available capacity, while supply constraints may limit how quickly additional equipment can be added.
How to Play URI Stock?United Rentals’ strong second-quarter performance, healthy rental demand and raised 2026 guidance support its growth prospects. Record rental revenues, higher fleet productivity and 25% growth in Specialty rental revenues highlight solid customer activity, while elevated utilization is driving additional fleet investment. Strong cash generation and a solid balance sheet also provide flexibility to support growth and shareholder returns.
Although URI trades at a premium valuation relative to the industry, upward earnings estimate revisions and expectations for more than 10% revenue growth at the midpoint of 2026 guidance support the higher multiple. With a Zacks Rank #2 (Buy) at present, United Rentals remains an attractive choice for investors seeking exposure to equipment rental and infrastructure-related activity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways United Rentals raised 2026 revenue guidance to $17.5-$17.8 billion on stronger customer demand.URI's Specialty rental revenues jumped 24.8%, while General Rentals grew 6.6% in Q2.United Rentals lifted 2026 gross rental CapEx to $4.85-$5.25 billion as fleet use remains high. United Rentals, Inc. (URI - Free Report) appears to be entering the second half of 2026 with considerable momentum. The equipment rental giant raised its full-year 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion, reflecting stronger-than-expected customer demand and confidence in large projects. Adjusted EBITDA guidance was also lifted by $300 million to $7.975-$8.125 billion.
The underlying rental trends provide reason for optimism. Second-quarter 2026 total equipment rental revenues jumped 12.7% year over year to $3.85 billion. Specialty emerged as a key growth engine, with rental revenues increasing 24.8% to $1.43 billion. General Rentals also delivered healthy growth of 6.6%, while its rental gross margin expanded 70 basis points to 35.8%. Demand is being supported by large projects across diverse end markets. URI highlighted activity involving hospitals, airports and LNG terminals, while data centers continued to contribute to growth. Power posted double-digit industrial growth, with metals and minerals also expanding at a healthy pace.
To capitalize on this demand, URI increased its 2026 gross rental CapEx guidance to $4.85-$5.25 billion. Year-to-date gross rental CapEx already exceeded $2.9 billion, while historically high fleet utilization is prompting further investment.
However, elevated capital expenditure and Specialty margin pressure remain watch items. Still, with strong project visibility, disciplined costs and raised guidance, United Rentals appears well-positioned to test the upper end of its outlook.
United Rentals vs. Gibraltar vs. CRH: Who Has the Stronger Demand Runway?United Rentals appears to have the strongest near-term demand visibility when compared with CRH plc (CRH - Free Report) and Gibraltar Industries, Inc. (ROCK - Free Report) , supported by robust large-project activity and customer backlogs.
CRH enters the second half with favorable demand trends. Second-quarter 2026 revenues increased 6% year over year to $10.8 billion, aided by positive pricing, underlying demand and acquisitions. Its Road Solutions business benefited from project execution and backlog conversion, while transportation, water infrastructure and reindustrialization remain key growth drivers.
Conversely, Gibraltar offers a more mixed picture. Second-quarter 2026 sales surged 64.6%, helped by acquisitions and organic growth, but Agtech backlog declined 34% to $66.2 million due to project timing. Strong quoting activity provides some encouragement, although backlog visibility remains less compelling than URI’s and CRH’s.
Overall, URI appears best positioned for near-term growth, while CRH benefits from broad infrastructure demand. Gibraltar’s outlook hinges more heavily on backlog conversion and project timing.
URI Stock’s Price Performance & Valuation TrendShares of this Connecticut-based equipment rental company climbed 30.8% in the past six months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.49, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved upward over the past seven days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvement of 15.4% and 14.7%, respectively.
Image Source: Zacks Investment Research
United Rentals currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Argent Capital Management LLC lowered its position in shares of United Rentals, Inc. (NYSE: URI) by 3.8% during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 111,116 shares of the construction company's stock after selling 4,443 shares during the
Key Takeaways United Rentals delivered record Q2 revenue as rental activity, fleet size and productivity all improved.URI raised its 2026 revenue and adjusted EBITDA outlook on backlogs, momentum and large projects.United Rentals' specialty rental revenue rose 24.8% on broad equipment demand. United Rentals (URI - Free Report) gave investors a cleaner view of its growth runway after a record-setting second quarter. Rental activity rose, fleet productivity improved and specialty demand remained a major contributor.
The upgraded 2026 outlook matters because it links near-term execution with customer backlogs and large-project activity. For a rental company tied to construction and industrial spending, that visibility carries weight.
United Rentals Posts Record Rental RevenueRental revenues increased 12.7% year over year to $3.85 billion in the second quarter of 2026. Total revenues rose 11.8% to $4.41 billion, marking a quarterly record.
The quarter was supported by a 7.1% increase in average original equipment at cost, a measure of fleet size, and a 3.4% improvement in fleet productivity. Owned equipment rental revenues grew 9%, showing that demand was not limited to one revenue stream.
URI Raises Its 2026 Financial OutlookUnited Rentals raised its full-year revenue outlook to $17.5 billion-$17.8 billion from $16.9 billion-$17.4 billion. Adjusted earnings before interest, taxes, depreciation and amortization guidance increased to $7.98 billion-$8.13 billion from $7.63 billion-$7.88 billion.
Management cited customer backlogs, year-to-date momentum and continued large-project activity as support for the higher outlook. Hospitals, airports, liquefied natural gas terminals and data centers were among the project categories supporting demand.
United Rentals Expands Specialty DemandSpecialty segment equipment rental revenues climbed 24.8% year over year to $1.43 billion. The segment remains a key part of URI’s broader strategy because it adds product depth beyond general rental equipment.
Demand was broad across trench safety, power and heating, ventilation and air conditioning, fluid solutions, mobile storage, matting, tools and site services. That breadth helps the company serve complex worksites through bundled rental solutions.
Argan, Inc. (AGX - Free Report) , a service provider to the power industry, also sits near the large-project theme because energy infrastructure can require extensive equipment and construction services. Masco Corporation (MAS - Free Report) , a manufacturer of branded home improvement and building products, offers a different read on construction-related demand, especially through repair, remodeling and new construction channels.
URI Balances Growth With Margin RiskGrowth did not remove the margin questions. Specialty equipment rental gross margin fell 140 basis points to 44.4% as lower-margin ancillary and re-rent revenues grew faster than owned equipment rentals.
Ancillary and re-rent revenues increased nearly 28%, roughly three times the growth rate of owned equipment rental revenues. Lower labor and benefit costs as a percentage of revenues partly offset that pressure, while broader revenue growth and cost-management efforts helped keep profitability from weakening across the business.
United Rentals Signals Strong Near-Term MomentumThe bottom line is that URI enters the second half of 2026 with rental demand, fleet investment and specialty growth working in its favor. Margin mix remains the main offset, especially if ancillary and re-rent activity continues to expand faster than owned equipment rentals.
The stock currently carries a Zacks Rank #1 (Strong Buy), which points to a favorable short-term earnings estimate revision picture over the next one to three months. Its Growth Score of B, Momentum Score of B and VGM Score of B add support for investors focused on growth characteristics, price trends and a blended style profile. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Value Score of C is more neutral, reflecting a less compelling valuation setup. For investors, that makes URI a growth and momentum story with a valuation profile that requires discipline.
