Here's Why United Rentals (URI) is a Strong Growth Stock

·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

United Rentals (URI)

Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,521 rental locations in United States, Canada and Europe. Moreover, it operates in 49 states and every Canadian province. The company offers 4,600 classes of equipment for rent at a total original equipment cost (“OEC”) of $19.6 billion (as of December 2022).

URI is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of B and VGM Score of A. Earnings are expected to grow 28.3% year-over-year for the current fiscal year, with sales growth of 20.3%.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $4.30 to $41.69 per share. URI boasts an average earnings surprise of 6.9%.

United Rentals is also cash rich. The company has generated cash flow growth of 14.6%, and is expected to report cash flow expansion of 26% in 2023.

Investors should take the time to consider URI for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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