Jim Cramer Reveals One Company That Just Had a Remarkable Quarter
The broader stock market may be stalled on Thursday, but shares of United Rentals, Inc. (URI) - Get United Rentals, Inc. Report are having no trouble rallying, climbing more than 3.5% so far on the day.
United Rentals beat on earnings per share and revenue estimates on Wednesday after the close. This is the largest equipment rental company in the country, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC's "Stop Trading" segment.
Micheal Kneeland, the CEO of United Rentals, had this to say: "The broad demand we saw early this year continued throughout the second quarter as we entered our busy season. ... We remain encouraged by the level of customer activity and the industry's ongoing absorption of fleet."
As a result, the company boosted its full-year guidance for revenue, adjusted EBITDA, capex and free cash flow.
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This was a "remarkable quarter," Cramer said, adding that Kneeland is doing a fantastic job. The company has done a great job turning around the ship. This is a reminder to investors to rethink their negative assumptions toward the U.S. construction industry, which appears to be doing better.
Also keep in mind that increased demand at United Rentals may have positive implications for another company: Caterpillar (CAT) - Get Caterpillar Inc. Report . URI is a big buyer of Caterpillar equipment, so this could be a positive read-through to Caterpillar's business, too, Cramer concluded.
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At the time of publication, Jim Cramer's Action Alerts PLUS had no position in any companies mentioned.
