What Happened?
Shares of equipment rental company United Rentals (NYSE: URI) jumped 8.5% in the afternoon session after the company announced strong second-quarter 2025 financial results, raised its full-year guidance, and increased its share repurchase program.
The equipment rental giant announced total revenue of $3.943 billion and an adjusted earnings per share (EPS) of $10.47 for the quarter. In a strong show of confidence, management raised its full-year 2025 forecast for key metrics including total revenue and free cash flow. Furthermore, the company increased its planned share repurchases for 2025 by $400 million, bringing the total to $1.9 billion. Share buybacks reduce the number of shares outstanding, which can boost earnings per share. The positive results and optimistic outlook prompted a favorable reaction from Wall Street, with B of A Securities raising its price target on the stock to $900 from $895 while maintaining a "Buy" rating.
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What Is The Market Telling Us
United Rentals’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 11.4% on the news that stocks rallied as Republican party candidate Donald Trump was declared the winner of the 2024 US presidential election. For industrials stocks, President-elect Trump is considered more pro-business and a defender of American industrial interests. This could generally lead to a more robust capital expenditures and investment environment.
United Rentals is up 25.6% since the beginning of the year, and at $866.47 per share, it is trading close to its 52-week high of $880.32 from November 2024. Investors who bought $1,000 worth of United Rentals’s shares 5 years ago would now be looking at an investment worth $5,386.
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