Chart of the Day: United Rentals Sends Signal About U.S. Economy
Here's what a technical look at URI could be saying -- and why you might want to lift up some shares if you're light on the stock.
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United Rentals (URI) is right at the center of business and commerce in the U.S. No need to look beyond what URI is doing to make an assumption about the economy in the U.S. or the world for that matter. When its business is strong, earnings robust and revenue grows it often means the U.S. economy is also doing well. But when the opposite conditions exist we can assume trouble is on the horizon.
United Rentals was certainly trying to make a case for strong growth earlier this year, and even solid earnings were not rewarding shareholders. As the war with Iran started to take shape investors were clearly being defensive about stocks, even shedding United Rentals far more than expected. Now, we could certainly argue a corrective period was due, however, the stock did falter late in 2025 and have a modest recovery but recently failed to hold support.
That level was the $800 mark, and once breached the stock had room to fall, but seems to have found its footing in the $730 range. We'll see if URI can build on this here and create some momentum. This might be a good spot to pick up some shares of URI if you're light on the name (less than the targeted amount we have in the portfolio).
Looking at the bottom of the chart, you will see money flow remains strong and a bit higher up, the moving average convergence divergence looks ready to cross over for a "buy" signal. We also see that stochastics are turning up. All bearish, but less currently.
We like United Rentals in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
Related: Our Take on Axon With Shares Under Renewed Pressure
At the time of publication, TheStreet Pro Portfolio was long URI.
