United Rentals (URI) shares have consistently outperformed the market and the Industrial sector over trailing 3-month, 1-year, and five-year periods. We expect this trend to continue, advises John Eade, president of Argus Research.

United Rentals is the largest rental equipment company in the world. We are comfortable with this well-managed company's ability to navigate the high-inflation economic environment, as well as with its adoption of new technology that will help it to grow in a post-COVID world.

Management has a clear strategy to compound shareholder value by balancing growth, margins, returns, free cash flow, and prudent capital allocation. The company is well-positioned for strong multiyear demand from public and private investment in infrastructure and industrial manufacturing.

In a sign of confidence for the future, the board instituted a quarterly dividend in 2023. The company also has a share buyback program.

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