United Rentals has just earned ESG accolades and closed a $2 billion acquisition. Those positive developments have URI stock landing a spot on IBD Leaderboard as it tests a buy zone while its relative strength line hits a new high.
Newsweek named United Rentals to its America's Most Responsible Companies 2023 list. This honor marks the fourth consecutive year on the prestigious list, which was established in 2020.
The annual report recognizes the top 500 most responsible companies in the United States, recognizing United Rentals for its excellence in environmental, social and corporate governance (ESG) programs.
United Rentals Expands With $2 Billion Bet
Headquartered in Stamford, Conn., United Rentals is the largest equipment rental company in the world, boasting a network of 1,449 locations in North America, 13 in Europe, 27 in Australia and 19 in New Zealand.
In North America, United Rentals operates in 49 states and all Canadian provinces. Roughly 24,700 employees serve construction and industrial customers, utilities, municipalities, homeowners and others, offering approximately 4,700 classes of equipment for rent, with a total original cost of $19.3 billion.
Earlier this month, United Rentals completed its acquisition of Ahern Rentals for roughly $2 billion in cash. The deal adds approximately 2,100 employees, 60,000 rental assets and 106 locations in the United States.
Revenue growth has ranged from 18% to 23% over the past six quarters. It sports an "A" SMR Rating in Stock Checkup, which measures sales growth, profit margins and return on equity.
The company has posted average earnings-per-share growth of 59% over the last three quarters. Analysts forecast 48% growth for the full year.
URI Stock Outpacing 99% Of All Stocks
United Rentals sports the highest-possible 99 Composite Rating, outpacing 99% of all stocks in terms of the most important stock-picking criteria.
URI stock joined IBD Leaderboard as a one-quarter position trade after moving above a trendline on Dec. 8. Position size was increased when URI topped the buy point Tuesday. The relative strength line has just hit a fresh high, a bullish sign of market leadership.
Shares have been working on a huge cup with handle that started to form in November 2021. Reflecting this year's bear market, it shows a relatively steep pullback of 44% from peak to trough.
While testing support at its 21-day line, URI stock is trying to withstand selling pressure in the market indexes and return to a 368.04 — 386.44 buy zone.
On Monday, United Rentals closed fractionally lower in light volume, right around its 21-day moving average.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
