MGRT stock forecast, quote, news & analysis
Mega Fortune Co Ltd is an Internet of Things (IoT) solution provider in Hong Kong... Show more
McGrath RentCorp (MGRT) Stock Analysis: Data-Center Demand Powers Test-Equipment Rental Growth
Key Takeaways
- McGrath RentCorp shares have traded in a relatively narrow range over the past 30 days, closing near $118 after recovering from a dip below $101 in early October.
- The stock rallied through September as the TRS-RenTelco test-equipment segment benefited from data center, aerospace and defense, and semiconductor demand.
- Second-quarter 2026 results missed consensus on earnings and revenue, but rental revenue still rose 6% year over year, led by Mobile Modular and TRS-RenTelco.
- Management narrowed its full-year revenue and adjusted EBITDA guidance while raising gross rental capital expenditure targets to support expansion.
- McGrath has increased its dividend for 35 consecutive years, a track record that appeals to income-focused investors.
- For more detail on this ticker, explore its Price Targets, Earnings, and Forecast on additional pages.
- Explore Trending AI Robots to see AI-driven trading strategies applied across thousands of tickers.
Current Market Snapshot
McGrath RentCorp has shown steady, rangebound behavior over the trailing 30 days. After touching levels above $119 in late September, the stock pulled back below $101 in early October before recovering to close near $118 by late October, leaving it roughly flat over the period. The move reflects a market that has largely priced in the company's diversified rental platform while waiting for the next earnings update, which is scheduled for late October 2026.
Broader sentiment around the stock remains constructive. Analysts tracked by major financial data providers maintain a consensus Buy rating, with a 12-month price target meaningfully above recent trading levels. The company's positioning across modular buildings, portable storage, and electronic test equipment gives it exposure to both infrastructure spending and technology-driven rental demand, which has helped support investor interest even during softer construction cycles.
McGrath RentCorp (MGRT) Business Overview and Competitive Position
McGrath RentCorp is a business-to-business rental company founded in 1979 and headquartered in Livermore, California. The company operates through four segments: Mobile Modular, which rents and sells relocatable modular buildings for classrooms, offices, and construction field use; Portable Storage, which provides steel storage and office containers; TRS-RenTelco, which rents electronic test equipment to aerospace, defense, electronics, industrial, research, and semiconductor customers; and Enviroplex, which manufactures and sells portable classrooms primarily to California school districts.
McGrath's competitive strength lies in its diversified, recurring rental revenue base and its role in the circular supply economy, which helps customers manage costs and environmental footprint. The company has expanded its modular operations to serve dozens of states through a combination of organic growth and acquisitions, and its value-added services such as Mobile Modular Plus and Site-Related Services have grown rapidly. A 35-year streak of annual dividend increases underscores the durability of its cash-generative business model.
Recent Developments Driving MGRT
Several verified developments shaped the stock over the past month. The company's second-quarter 2026 results, reported in late July, showed adjusted earnings of $1.37 per share and revenue of $221.1 million, both below consensus estimates, as lower sales revenue offset solid rental growth. TRS-RenTelco was the standout, with rental revenue up 17% to $32 million on robust demand tied to new data center construction, aerospace and defense programs, and semiconductor manufacturing.
Management updated its full-year 2026 outlook by narrowing total revenue guidance to $955 million to $985 million and adjusted EBITDA guidance to $363 million to $375 million, while raising gross rental capital expenditure guidance to $200 million to $220 million to capture growth opportunities in test equipment and modular expansion. The company also continued its quarterly dividend and reaffirmed expectations for a stronger second half in Mobile Modular, even as portable storage demand remained pressured by soft commercial construction activity.
Trending AI Robots
Tickeron offers hundreds of AI trading bots that trade thousands of tickers, but only the top-performing and most relevant bots appear in its curated Trending AI Robots section. These bots vary widely in strategy, timeframe, and performance metrics, giving traders a range of approaches to explore across different market conditions. The section highlights AI-driven tools that scan for signals and automate trading decisions, helping users identify which strategies are currently standing out. For investors looking to complement their own research on McGrath RentCorp and other stocks, browsing the Trending AI Robots page offers a practical way to see AI-powered analysis in action.
2026 Outlook and What Investors Should Watch
Looking ahead, the most important catalyst is McGrath RentCorp's third-quarter earnings report and conference call, scheduled for late October 2026, which will provide updated detail on rental utilization, pricing, and demand trends across segments. Investors will closely monitor whether TRS-RenTelco sustains its double-digit rental revenue growth tied to data center and semiconductor buildouts, and whether Mobile Modular's utilization continues its sequential improvement amid soft commercial construction.
Other factors to watch include the trajectory of portable storage margins, which have faced pressure from higher equipment preparation and trucking costs, and the company's elevated capital expenditure program aimed at geographic and product expansion. Macroeconomic conditions, interest rates, and commercial construction activity remain key demand drivers, while competitive dynamics in the equipment rental and modular space continue to evolve. The company's ability to deliver on its narrowed guidance range and convert rental investment into adjusted EBITDA growth will be central to the stock's direction through 2026.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
MGRT saw its Stochastic Oscillator leaves the overbought zone
The Stochastic Oscillator for MGRT moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 11 similar instances where the indicator exited the overbought zone. In 10 of the 11 cases the stock moved lower. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MGRT moved out of overbought territory on November 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 9 similar instances where the indicator moved out of overbought territory. In 8 of the 9 cases, the stock moved lower in the following days. This puts the odds of a move lower at 89%.
The Momentum Indicator moved below the 0 level on November 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MGRT as a result. In 23 of 30 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MGRT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
MGRT broke above its upper Bollinger Band on October 23, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MGRT just turned positive on October 20, 2026. Looking at past instances where MGRT's MACD turned positive, the stock continued to rise in 9 of 9 cases over the following month. The odds of a continued upward trend are 90%.
MGRT moved above its 50-day moving average on October 16, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MGRT crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 3 of 4 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +8.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where MGRT advanced for three days, in 61 of 64 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
The Aroon Indicator entered an Uptrend today. In 62 of 62 cases where MGRT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. MGRT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MGRT's P/B Ratio (104.167) is very high in comparison to the industry average of (2.898). MGRT's P/E Ratio (694.118) is considerably higher than the industry average of (18.492). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.284). Dividend Yield (0.000) settles around the average of (0.224) among similar stocks. P/S Ratio (114.943) is also within normal values, averaging (139.965).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MGRT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Industry InformationTechnologyServices