MGRC Stock Analysis: Buy, Sell, or Hold?

MGRC - Mcgrath Rentcorp

SERVICES-EQUIPMENT RENTAL & LEASING, NEC
$110.82
1.06 (0.97%) β–²
5d: +1.73%
30d: +0.56%
90d: +4.29%
BUY
HIGH Confidence
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 23, 2026 22d

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
βœ… BUY SIGNAL: MGRC shows strong fundamentals and good volume confirmation. Solid entry point despite slightly high pricing.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$156.69
Based on 6.5% avg growth
INTRINSIC VALUE TODAY
$97.29
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.3x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: MGRC is currently trading at $110.82, which is considered slightly high relative to its 30-day fair value range of $105.33 to $112.27. The stock's valuation (Forward PE: 15.6) is in line with its historical norms (16.3). Remarkably, the market is currently pricing in an annual earnings decline of 1.5% over the next few years. This pessimistic expectation contrasts with the company's recent 28.1% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, MGRC is in a uptrend. The price is approaching resistance at $111.71. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: MGRC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $144.60 (+31.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Fair Price Range $105.33 - $112.27
Company Quality Score 58/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 76.2%

All Signals

  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 31.7% below Wall St target ($144.60)

Fair Price Analysis

30-Day Fair Range $105.33 - $112.27
Current vs Fair Value SLIGHTLY HIGH

Support & Resistance Levels

Support Level $103.96
Resistance Level $111.71
Current Trend Uptrend
Technical data as of Mar 31, 2026

Fundamental Context

Forward P/E (Next Year Est.) 15.60
Wall Street Target $144.60 (+31.7%)
Revenue Growth (YoY) 5.3%
Earnings Growth (YoY) 28.1%
Profit Margin 16.6%
Valuation Discount vs History -1.5% cheaper
PE vs Historical 15.6 vs 16.3 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -1.5% (market-implied from PE analysis)
1-Year Target $108.11 (-2%)
2-Year Target $106.49 (-3%)
3-Year Target $104.89 (-4%)
3-Yr Target (if PE normalizes) (PE: 16β†’16) $109.63 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.4, Growth: 8.9%) $203.12 (+85%)
Base: (SPY PE: 15.6, Growth: 8.9%) $141.74 (+29%)
Bear: (PE: 13.3, Growth: 8.9%) $120.48 (+10%)
πŸ“ˆ Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 16.60 | Current EPS (TTM): $6.35
Bull Case $129.33 (+19%)
Analyst growth 11.6%, PE expands to 18.3
Base Case $117.57 (+8%)
Market implied 11.6%, PE stable at 16.6
Bear Case $71.66 (-34%)
Severe decline -20.0%, PE contracts to 14.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.6 to 16.3
Stabilization Target: $114.71 (+4.5%)
PE Expansion Potential: +4.5%
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Last updated: March 31, 2026 3:04 PM ET
Data refreshes hourly during market hours. Next update: 4:04 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Technical Signals Check
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Gilda Malek SELL 829 shares 2025-12-15

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