United Rentals Skyrockets 4.73%—Is This the Dawn of a New Bullish Era?

Summary
• United Rentals (URI) surges to a 52-week high of $911.50, marking a 4.73% intraday gain.
• Q2 earnings beat and raised guidance drive investor optimism, with Bernstein and KeyBanc raising price targets to $885 and $960.
• Turnover hits 367,898 shares, with dynamic P/E at 25.70, signaling strong demand.
• Sector peers like Herc Holdings (HRI) rally 8.8%, reflecting broader rental demand.

United Rentals’ explosive move has captured market attention, fueled by a Q2 earnings beat, raised full-year guidance, and robust construction sector demand. The stock’s surge to a 52-week high underscores its leadership in the rental & leasing services sector, with technical indicators and analyst upgrades amplifying the bullish narrative. As investors weigh the sustainability of this rally, the interplay between URI’s fundamentals and sector dynamics becomes critical.

Q2 Earnings Beat and Guidance Hike Ignite Investor Optimism
United Rentals’ 4.73% surge is directly tied to its Q2 earnings report, which exceeded expectations and included a $100 million revenue guidance increase. The company reported $3.94 billion in revenue, surpassing forecasts by 0.8%, while raising EBITDA guidance by $50 million. Analysts at Bernstein and KeyBanc raised price targets to $885 and $960, respectively, citing strong Specialty segment growth (14% YoY) and strategic initiatives like enhanced safety training programs. The stock’s momentum is further fueled by a 28% YTD gain, outperforming the S&P 500’s 9.17% return.

Rental & Leasing Services Sector Trails URI’s Momentum
The Rental & Leasing Services sector gained 2.83% intraday, with United Rentals outperforming peers like Herc Holdings (HRI, +8.8%) and AerCap (AER, +2.31%). URI’s 28.29% YTD return dwarfs the sector’s 6.48% gain, reflecting its dominant market share and strategic focus on high-margin specialty rentals. Competitors like U-Haul (UHAL, -15.62% YTD) and Hertz (HTZ, -37.78% YTD) lag, underscoring URI’s ability to capitalize on construction and infrastructure demand.

Leverage URI’s Volatility with Gamma-Driven Calls
• 200-day average: 733.02 (below current price)
• RSI: 70.56 (overbought)
• MACD: 24.41 (bullish divergence)
• Bollinger Bands: Price at 911.50 (near upper band at 923.93)
• Support/Resistance: Key support at 874.03, resistance at 923.93

URI’s technicals suggest a continuation of its bullish trend, with RSI at 70.56 and MACD divergence indicating overbought momentum. The 200-day average lags 16% below the current price, while the 874.03 intraday low remains a critical support level. Traders should prioritize the URI20250822C900 and URI20250822C920 options to leverage its gamma-driven volatility.

Top Option 1: URI20250822C900
• Contract Code: URI20250822C900
• Type: Call
• Strike Price: $900
• Expiration: 2025-08-22
• IV: 23.12% (moderate)
• Leverage Ratio: 43.07% (high)
• Delta: 0.634970 (moderate sensitivity)
• Theta: -2.368054 (high time decay)
• Gamma: 0.010280 (strong price sensitivity)
• Turnover: 4,037 (high liquidity)

This call option offers a 238.40% price change ratio and 43.07% leverage, ideal for capitalizing on URI’s near-term volatility. With a 23.12% IV and high gamma, it benefits from price swings above $900. A 5% upside to $955.84 would yield a payoff of $55.84 per contract, netting $5,584 per 100 shares.

Top Option 2: URI20250822C920
• Contract Code: URI20250822C920
• Type: Call
• Strike Price: $920
• Expiration: 2025-08-22
• IV: 23.95% (moderate)
• Leverage Ratio: 79.62% (very high)
• Delta: 0.423075 (moderate sensitivity)
• Theta: -1.846013 (high time decay)
• Gamma: 0.010335 (strong price sensitivity)
• Turnover: 22,880 (very high liquidity)

This option’s 79.62% leverage and 23.95% IV make it a high-reward play for a breakout above $920. A 5% upside to $955.84 would generate a $35.84 payoff per contract, netting $3,584 per 100 shares. Aggressive bulls should consider URI20250822C920 into a break above $920.

If $900 holds, URI’s 52-week high could be just the beginning. Watch Herc Holdings (HRI, +8.8%) for sector cues and key levels at $900 and $920.

Backtest United Rentals Stock Performance
The backtest of URI's performance after a 5% intraday surge shows favorable results, with the 3-Day win rate at 55.38%, the 10-Day win rate at 57.28%, and the 30-Day win rate at 65.66%. These rates indicate that URI tends to experience positive returns in the short term following a significant intraday increase.

URI’s Rally Gains Legs—Act Now Before Gamma-Driven Volatility Peaks
United Rentals’ 4.73% surge is underpinned by Q2 outperformance, sector leadership, and technical momentum. With RSI at 70.56 and MACD divergence, the stock is primed for a continuation above $911.50. Investors should prioritize the URI20250822C900 and URI20250822C920 options to leverage its gamma-driven volatility. Watch Herc Holdings (HRI, +8.8%) for sector cues and key levels at $900 and $920. If $900 holds, URI’s 52-week high could be just the beginning.