United Rentals and industry peers face declines amid Ashtead's lowered forecast

Shares of United Rentals , Inc. (NYSE:URI ) and other equipment rental companies experienced a downturn following an announcement from Ashtead Group (LON:AHT ), a London-based equipment rental company, that it has lowered its guidance for the year due to softer conditions in the US market. The news prompted a drop in United Rentals' stock by 4%, while Herc Holdings (NYSE:HRI ) saw a 5% decline, and H&E Equipment Services (NASDAQ:HEES ) experienced a 4% decrease.

Mircea Dobre, an analyst at Baird, commented on the situation, indicating that a deceleration in rental demand is becoming more apparent and could intensify as the year 2025 approaches. He highlighted that United Rentals could face the highest risk amongst its peers. Dobre also pointed out that Ashtead has plans to shift its primary listing to the United States.

The ripple effect of Ashtead's updated guidance was felt across the sector, with Caterpillar Inc (NYSE:CAT )., a key player in the construction and mining equipment manufacturing industry, witnessing a 1.6% fall in its shares. Similarly, construction machinery companies Oshkosh (NYSE:OSK ) Corporation and Terex (NYSE:TEX ) Corporation both saw their stocks decline by over 2%. These movements reflect the broader impact of market conditions on the industry as a whole.

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Source: Investing.com