United Rentals, Inc. (URI): The Farther You Look The Better It Gets

United Rentals, Inc. (NYSE:URI) just climbed about 0.2% in the course of the day to almost $117 and is among FOX’s Charles Payne’s stock picks with 10.05% return since June 5th. The journalist’s sharp gaze follows the stock closely for future changes, but he’s quite confident that it will reach even higher grounds.

Analyzing events post factum is quite simple, for example depicting the stock among many other potential good investments is not an easy task, but after knowing that its value has grown above expectations it is relatively trivial to find why. United Rentals, Inc. (NYSE:URI)’s financial report for the second quarter 2014 reveals earnings before interest, taxes, depreciation and amortization (EBIDTA) of $663, a 47.5% of the revenues, so far the highest it got for a second quarter. Revenues got a boost of $193 million, up to $1.399 billion, that is 16.8% more than last year. Return on invested capital was 8.1% for the 12 months ended June 30, 2014, higher by 1.1% than last year’s homologous period.

United Rentals, Inc. (NYSE:URI)’s guidance also got updated to fit the latest progress. The company expects revenues, $100 million bigger than previously, up to a $5.55 – $5.65 estimate and an EBIDTA value of $2.65 billion to $2.70 billion, $100 million more. It also awaits an increase in rental rates of 0.5% to a new 4.5% approximation.

Penn Financial Group founder Matt McCall was short in words regarding United Rentals, Inc. (NYSE:URI)’s prospect, he merely confirmed that it’s “just a great long term holding”. The company is not particularly large, some $11.25 billion market capitalization, for the industry its core businesses target, but it brings impressive profits to the shareholders and it can still go much larger. Assuming no significant changes to the rules of the game and no surprising appearances among competitors, United Rentals, Inc. (NYSE:URI)’s stock price will continue to grow.

Disclosure: none