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What Makes United Rentals Attractive?

This sophisticated, national company has what its customers need.


Scott Pope: As industrial and construction companies pursue asset-light business models, they have increasingly relied on rental companies to provide the critical equipment they need. One company, United Rentals, has emerged as a clear leader in the equipment rental industry with a 13% share of the growing $55 billion North American market. We believe that it is poised to expand its capabilities, market share, and pricing power to further extend its lead over rivals. United Rentals is currently a 4-star-rated stock trading 25% below our fair value estimate of $185, which equates to 11 times our 2019 EPS estimate.

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Scott Pope does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.