Recs

14

5-Star Stocks Poised to Pop: United Rentals

Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, equipment rental company United Rentals (NYSE: URI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at United Rentals' business, and see what CAPS investors are saying about the stock right now.

United Rentals facts

Headquarters (founded)

Greenwich, Conn. (1997)

Market Cap

$360.61 million

Industry

Rental and Leasing Services

Trailing-12-Month Revenue

$3.27 billion

Management

CEO Michael Kneeland (since 2008)

CFO William Plummer (since 2008)

Return on Capital (average, last three years)

8.8%

Competitors

Hertz Global (NYSE: HTZ  )

Home Depot (NYSE: HD  )

CAPS members bullish on URI also bullish on:

General Electric (NYSE: GE  )

ConocoPhillips (NYSE: COP  )

Manitowoc (NYSE: MTW  )

CAPS members bearish on URI also bearish on:

MBIA (NYSE: MBI  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, 93.5% of the 139 members who have rated United Rentals believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars joceans and icanpickm, both of whom are ranked in the top 7% of our community.

Last month, joceans noted that United Rentals "may be in a position to substantially benefit from the stimulus package." Our CAPS member concludes: "With major infrastructure work around the country being proposed, and the fact that people may not have the cash or desire to purchase equipment, the renting of large construction equipment may be the right business model."

In a pitch from one week earlier, icanpickm shares that contrarian sentiment:

Yes, construction is down and the infrastructure portion of the stimulus bill was pathetic, but this company has good cash flow and no debt due till 2012. They can reduce purchases of new equipment and cut costs. They are closing stores and cutting costs. They bought back some debt at a big discount and may continue to do so. ... 2008 was not a good year for construction and [United Rentals] was able to hold up its utilization pretty well. 2009 construction will be weak, but it is not going to zero and if this economy ever turns around, these guys may be the last ones standing.

What do you think about United Rentals, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Home Depot is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/10/2012 4:02 PM
URI $40.11 Down -0.65 -1.59%
United Rentals, In… CAPS Rating: **
HTZ $14.69 Down -0.18 -1.21%
Hertz Global Holdi… CAPS Rating: **
MBI $11.92 Down -0.09 -0.75%
MBIA, Inc. CAPS Rating: *
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Manitowoc Company,… CAPS Rating: ****
COP $72.25 Up +0.70 +0.98%
ConocoPhillips CAPS Rating: *****
GE $18.88 Down -0.26 -1.33%
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HD $45.33 Up +0.06 +0.13%
The Home Depot, In… CAPS Rating: ***

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