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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.

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