Trade-Ideas: United Rentals (URI) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified United Rentals ( URI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified United Rentals as such a stock due to the following factors:

  • URI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.9 million.
  • URI has traded 1.8 million shares today.
  • URI is trading at a new lifetime high.

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More details on URI:

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,300 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. URI has a PE ratio of 24.6. Currently there are 6 analysts that rate United Rentals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for United Rentals has been 1.7 million shares per day over the past 30 days. United Rentals has a market cap of $5.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.57 and a short float of 14.6% with 5.03 days to cover. Shares are up 24.4% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United Rentals as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 21.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 223.80% and other important driving factors, this stock has surged by 80.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 259.6% when compared to the same quarter one year prior, rising from -$52.00 million to $83.00 million.
  • Net operating cash flow has significantly increased by 432.95% to $469.00 million when compared to the same quarter last year. In addition, UNITED RENTALS INC has also vastly surpassed the industry average cash flow growth rate of 68.14%.
  • The gross profit margin for UNITED RENTALS INC is rather high; currently it is at 57.21%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.88% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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