United Rentals...Another Great Economic Barometer
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company that services construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. Through United Rental a company can rent backhoes, forklifts, earthmoving equipment, and material handling equipment, scissor lifts, crossing plates, line testing equipment for underground work, electrical distribution equipment, etc.
So you see, like Caterpillar, United Rentals is a great barometer of the economy. United Rentals reported earnings last week and earned $3.31 / share for the fourth quarter which beat estimates. Revenue also rose 22% compared to the fourth quarter last year. Probably more important, United Rentals said they were still on target with the 2019 targets.
United Rentals reaffirmed its forecast for full-year 2019 revenue of between $9.15 billion and $9.55 billion, and management said it sees no sign of an imminent slowdown.
"We're pleased with our solid start to 2019, and the broad-based growth we realized across geographies and verticals," CEO Michael Kneeland said in a statement. "By reaffirming our guidance, we're emphasizing our confidence in the cycle. The year is unfolding as we expected -- customer sentiment remains positive, and feedback from the field points to healthy end-market activity."
So where is price headed next, lets go to the charts?
Monthly Chart (Curve Timeframe) – monthly supply is at $183 and the monthly demand is at $62.
Weekly Chart (Trend Timeframe) – the trend is down, until the recent swing high gets breached.
Daily Chart (Entry) – the chart suggests to short price at the daily supply at $140 with a half position since the level is no longer fresh.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.