While I decided to deep dive into it. Here’s what drew my attention. United Rentals seems to be profiting from this. Here’s how
It makes money by buying, owning, and renting construction equipment. This is a picks and shovels play if you will for the money to be spent on.
Here’s the details of the bill indirectly the numbers on which United Rentals could capitalise on.
$110B for roads, bridges, and other major projects
$66B for rail and freight
$65B into broadband
$55B into water systems
$39B for public transit
Why should a construction company rent equipment – I’d prefer buying my own – The thought that crosses everyone’s mind. Well again, read a few blogs and some forums and here’s what I found out.
"So, you have to level some ground to put up a building? No problem, we will bring a few bulldozers and a planer by tomorrow."
"Ohh you have to pave a road now? And its in the city so you have to work at night? Alright, I’ll add construction lights to your order of concrete grinders and mixers. Do you want a bulldozer with that? yeah, I thought you would."
Construction businesses require new equipment after every phase completion and that’s where companies like united rentals come into the picture.
The numbers too don’t disappoint at the time of writing this blog the stock was valued at $401.63 up by 2.5% today. Market cap of $29.08B and P/E ratio of 24.3.
Will you invest? Or the uptick is short-lived?