Long Trade Idea
Enter your long position between $858.50 (an intermediate horizontal support level) and $889.47 (yesterday’s intra-day high).
Market Index Analysis
- United Rentals (URI) is a member of the S&P 500 Index.
- This index trades inside a bearish chart pattern with rising bearish trading volumes.
- The Bull Bear Power Indicator of the S&P 500 Index is bullish but below its descending trendline.
Market Sentiment Analysis
Equity futures are trading higher this morning, but are coming off their highs, as markets brace for the delayed January NFP report. It is likely to inject volatility and direct price action. While economists expect a median gain of 68,000 jobs with an unchanged unemployment rate of 4.4%, it could surprise on the downside. The government has already downplayed the importance of this report, and the next review is likely to show an overall reduction in jobs over the past year. A weak number could add to selling pressure after weak December retail sales, and the software sell-off sparked by AI.
United Rentals Fundamental Analysis
United Rentals is an equipment rental company that owns the world’s largest rental fleet. It has over 4,800 classes of equipment with an original equipment cost (OEC) exceeding $20.59 billion and maintains over 1,625 locations, primarily in the US.
So, why am I bearish on URI despite its earnings miss?
While its fourth quarter earnings fell short of estimates, United Rentals reported record 2025 revenues. I turned bullish as URI shows robust demand from data centers, healthcare, infrastructure, and industrial projects, while its high-margin specialty rental segment accounted for 37% of total revenue in 2025. I am equally bullish on its expansion, including the opening of 60 new locations in 2025 and strategic acquisitions such as Yak Access and H&E Equipment Services.
MURIic | Value | Verdict |
P/E Ratio | 22.73 | Bearish |
P/B Ratio | 6.16 | Bearish |
PEG Ratio | 1.44 | Bullish |
Current Ratio | 0.94 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
The price-to-earning (P/E) ratio of 22.73 makes URI an expensive stock compared to its peers but inexpensive relative to the S&P 500. By comparison, the P/E ratio for the S&P 500 is 29.59.
The average analyst price target for URI is $990.95, suggesting good upside potential with manageable downside risks.
United Rentals Technical Analysis
Today’s URI Signal
- The URI D1 chart shows price action inside a bullish price channel.
- It also shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
- The average bullish trading volumes are higher than the average bearish trading volumes.
- URI advanced with the S&P 500 Index this week, a bullish confirmation.
My URI Long Stock Trade
- URI Entry Level: Between $858.50 and $889.47
- URI Take Profit: Between $971.13 and $990.95
- URI Stop Loss: Between $808.77 and $826.24
- Risk/Reward Ratio: 2.27
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