United Rentals Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of United Rentals (NYS: URI) jumped 10% today after the company released a blowout earnings report.

So what: The company absolutely crushed expectations in the fourth quarter with revenue increasing 25% to $746 million and adjusted earnings per share hitting $0.89. Analysts had only expected $688 million in revenue and $0.58 in earnings per share, so the company certainly shocked most observers.

Now what: Considering how soundly the company beat expectations, I'm a little surprised the stock isn't up more. The company has crushed expectations for two consecutive quarters now and shares still trade at just over 14 times 2012 earnings estimates. I think the company can outperform that given its recent strength, and I will even make a CAPSCall on it, adding an outperform rating in My CAPS page to back it up.

Interested in more info on United Rentals? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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