Closing Out This Position as Fed Rate Hike Odds Rise
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| URI | SELL | 94 |
After you receive this alert, the Pro Portfolio will sell the remaining 94 shares of United Rentals ($URI) at or near $1,000. This will close out the Portfolio’s position with a gain of about 40% on this last piece of the shares.
Coming off of the August CPI report findings, the market’s expectation for the Fed to deliver a rate hike next week and, in our view, the central bank issuing incrementally hawkish comments, we are opting to lock in significant gains in URI shares on Friday rather than wait and watch those gains erode.
We laid out our line of reasoning when we cut the Portfolio’s URI position down on Thursday, and we see Friday’s move very much in-line with that thinking.
As we make this trade, we will place URI shares into the Portfolio’s Bullpen for future consideration. As we sit here on Friday, the likely catalyst for us to bring URI shares back to the Bullpen will be either a rebound in homebuilding construction or inflation pressures subsiding to the degree they prompt a potential rate cut by the Fed. Odds are either one of those is more likely to be a 2027 event, but if and when in 2027 will hinge on multiple factors.
For now, we’ll take our roughly 40% gain in this batch of URI shares and look for other opportunities. As part of that, we will be sharing an updated list of Portfolio pick up points early next week.
More Pro Portfolio
- Buying More of This Semi-Cap Play on Tightening Industry Capacity
- We’re Tracking 28 Signals Across 8 of the Portfolio’s Investment Themes
- Weekly Roundup: Maintaining Our Lead With a Telling Week Ahead
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long URI shares.
| Symbol (Add to Bullpen) |
|---|
| URI |
