Following Oppenheimer’s well-attended 8th Annual Industrial Growth Summit, the firm is incrementally optimistic on rental services stocks, given common upbeat tones on a rebounding nonresidential construction market. This is consistent with recent improvement in the Architecture Billings Index (ABI), which is also perceived to be a 9-month to 12-month leading indicator for nonresidential construction. One thing is sure for investors. If nonresidential construction starts matching the strength of residential, the economy may turn sooner than some economists think.

With impressive and optimistic presentations in abundance at the conference, the research team at Oppenheimer is very positive on not only rental services stocks, but logistic services as well

United Rentals Inc. (NYSE: URI) hit a 52-week high last week in the big rally. It was very upbeat at the Oppenheimer conference on current business conditions and accelerated growth in the second half of this year, and also appears well-positioned to drive an accelerating rental rate growth. The Oppenheimer price target for the stock is lifted to $68 from $63. The Thomson/First Call estimate is $65.

Mobile Mini Inc. (NASDAQ: MINI) drew attention to the commercial services leasing industry last week, vaulting 14% Monday after a solid first-quarter report. The consensus price target for the stock is $38.

Essex Rental Corp. (NASDAQ: ESSX) continues to experience a gradual improvement in utilization/rental rates across all asset categories with its core end markets building initial momentum. The consensus price target for the stock is $5.75. If achieved that would represent a 33% move from the current trading level.

FedEx Corp. (NYSE: FDX) was upbeat at the conference on progress in its voluntary buyout program in U.S. Express, as well as in its capacity reduction initiatives in its trans-Pacific lanes. The consensus price objective for this logistics and transportation giant is $115. The stock pays a small 0.60% dividend.

Landstar System Inc. (NASDAQ: LSTR) appeared optimistic at the Oppenheimer conference in anticipating a second half of the year improvement in its machinery end market. The consensus price target for the stock is $59.50. The company pays a miniscule 0.40% dividend.

XPO Logistics Inc. (NYSE: XPO) missed on earnings last week. While both numbers were short of the consensus estimates, the company’s growth represented a whopping 155.8% gain over the prior year. The consensus price target for the stock is $21.

Investors who bought the home building stocks have done extremely well over the last three years. A boom in the non-residential construction may be another bonanza for investors. The Oppenheimer stocks to buy may provide just that avenue.

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