United Rentals (URI) Surges 4.78% on Bullish Technicals and Strategic Expansion Momentum

Summary
• United Rentals (URI) rockets 4.78% to $923.0465, hitting a 52-week high of $1,021.47
• DCF analysis flags stock as 22% undervalued, while analysts upgrade to 'Moderate Buy'
• New distribution partnership with Working Distributors expands American Rebel Light Beer's Indiana footprint
• Options chain reveals high-leverage call options with 41.14% and 54.26% leverage ratios

United Rentals' intraday surge reflects a confluence of technical strength, valuation optimism, and strategic momentum. The stock's 4.78% gain—driven by a bullish K-line pattern and a new distribution deal—positions it at a critical juncture. With a 22.2x P/E below its fair ratio of 31.2x and a DCF intrinsic value of $1,128.78, the rally aligns with both fundamental and technical catalysts.

Valuation Optimism and Distribution Expansion Fuel URI's Surge
United Rentals' 4.78% intraday gain stems from a dual catalyst: a DCF model indicating a 22% undervaluation and a strategic distribution partnership expanding American Rebel Light Beer's reach. The Simply Wall St DCF analysis estimates an intrinsic value of $1,128.78, while the P/E ratio of 22.2x sits below its proprietary fair ratio of 31.2x. Simultaneously, the new partnership with Working Distributors—adding five Indiana counties—strengthens American Rebel's national rollout, aligning with URI's Distributor-First strategy. These factors, combined with a short-term bullish K-line pattern, have ignited investor confidence.

High-Leverage Call Options and ETFs for URI's Bullish Momentum
• 200-day average: $806.98 (below current price)
• RSI: 67.86 (neutral to overbought)
• MACD: 11.34 (bullish divergence)
• Bollinger Bands: Price at $923.05 (above upper band of $884.19)

URI's technicals suggest a continuation of its bullish momentum. Key support at $817.16 and resistance at $884.19 define a breakout scenario. The RSI near 68 and MACD above zero reinforce upward bias. For leveraged exposure, consider URI20260116C905 and URI20260123C910:

• URI20260116C905
- Strike: $905, Exp: 2026-01-16
- IV: 17.37% (moderate), Leverage: 41.14% (high), Delta: 0.78 (high), Theta: -2.99 (high decay), Gamma: 0.0116 (moderate)
- Payoff: At 5% upside ($969.20), payoff = $64.20 per contract
- Why: High leverage and moderate IV position this for aggressive gains if URI holds above $905.

• URI20260123C910
- Strike: $910, Exp: 2026-01-23
- IV: 9.49% (low), Leverage: 54.26% (very high), Delta: 0.796 (high), Theta: -1.65 (moderate decay), Gamma: 0.0154 (moderate)
- Payoff: At 5% upside ($969.20), payoff = $59.20 per contract
- Why: Exceptional leverage and high delta make this ideal for short-term bets on continued momentum.

Aggressive bulls should target URI20260116C905 into a break above $905, while URI20260123C910 offers amplified exposure for a 5% upside scenario.

Backtest United Rentals Stock Performance
The backtest of URI's performance after a 5% intraday increase from 2022 to the present shows favorable results. The 3-Day win rate is 52.91%, the 10-Day win rate is 55.81%, and the 30-Day win rate is 59.69%, indicating that the ETF tends to experience positive returns in the short term following the 5% surge. The maximum return during the backtest period was 6.76%, which occurred on day 58, suggesting that there is potential for gains but with some volatility.

URI's Breakout: A High-Conviction Trade Amid Valuation and Expansion Catalysts
United Rentals' 4.78% surge reflects a compelling mix of undervaluation and strategic momentum. With a DCF intrinsic value of $1,128.78 and a P/E below its fair ratio, the stock is positioned for continued outperformance. The new distribution partnership with Working Distributors further validates its Distributor-First strategy, while technicals suggest a breakout above $884.19. Investors should monitor the 200-day MA at $806.98 and RSI levels to confirm sustainability. Meanwhile, sector leader Hertz Global (HTZ) is up 2.25%, signaling broader industrial strength. For high-conviction traders, URI20260116C905 offers a leveraged path to capitalize on this momentum.