This beaten-down data center stock could be worth a look, says Mike Khouw

Mike Khouw argues United Rentals may be worth considering because its shares trade below broad market valuation levels while the company’s revenue, earnings and EBITDA are growing faster than the S&P 500. A recent quarterly results beat and upgraded outlook, alongside rising analyst estimates, support his moderately bullish view.

United Rentals trades at about 17.3 times forward earnings and 8.8 times projected 2027 EBITDA, according to the article. Non-residential construction and infrastructure demand are supporting rental rates, though a slowdown in data centre construction could weigh on growth. The stock is also 20% to 25% above its five-year average valuation, so Khouw favours cash-covered puts as a defined-risk way to seek an entry; the article excerpt does not give the trade’s specific terms.