Latest news with #HercHoldings
Yahoo
24-07-2025
- Business
- Yahoo
Herc Holdings Inc. (HRI): A Bull Case Theory
We came across a bullish thesis on Herc Holdings Inc. on by sag301. In this article, we will summarize the bulls' thesis on HRI. Herc Holdings Inc.'s share was trading at $136.65 as of July 18th. HRI's trailing and forward P/E were 30.50 and 10.58 respectively according to Yahoo Finance. A close-up of industrial machinery used for steel production, the sparks flying off the sides. Herc Holdings (HRI), the third-largest player in the North American equipment rental market, has strengthened its competitive position with the acquisition of H&E, expanding its network to 600 branches and securing a leading presence in most major rental markets. With a 6% market share and diversified exposure across non-residential, infrastructure, industrial, and commercial segments, HRI has evolved significantly since its spin-off from Hertz, adopting operational discipline similar to leaders Ashtead (AHT) and United Rentals (URI). Industry consolidation and improved pricing discipline, underpinned by tools like Rouse Analytics, have structurally improved returns and operational resilience. The big three players benefit from procurement advantages, superior fleet utilization, and the ability to meet the complex demands of large contractors, with customer relationships reinforced by reliability and service responsiveness. Rental penetration in the U.S. continues to rise, especially in specialty equipment, which offers higher margins, faster growth, and greater stickiness. HRI is positioned to benefit from sustained demand driven by U.S. mega projects and infrastructure spending, with national accounts already contributing nearly half of its revenue. The company's M&A strategy, focused on specialty assets, has been value accretive, with acquisitions typically devaluing to 3.5–4.5x EBITDA post-synergy. Despite having the narrowest moat of the top three, HRI trades at an attractive 8x FY26 earnings, offering mid-single-digit rental growth and margin expansion. Its diversified end markets, variable cost structure, and improved capital discipline provide resilience in downturns, while potential strategic interest from private equity or larger peers offers downside support. Synergies from the H&E deal, robust construction activity, and policy-driven infrastructure spending serve as near-term catalysts. Previously we covered a bullish thesis on Hertz Global Holdings, Inc. (HTZ) by Bill Ackman on X in May 2025, which highlighted an improving car rental industry structure, operational turnaround, and asset value upside. The stock has appreciated about 6.80% since, as the thesis began to play out. The thesis remains intact. sag301 shares a similar view on HRI, stressing its scale, structural tailwinds, and valuation. Herc Holdings Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held HRI at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the potential of HRI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Sign in to access your portfolio
Yahoo
06-07-2025
- Business
- Yahoo
Is Now The Time To Look At Buying Herc Holdings Inc. (NYSE:HRI)?
While Herc Holdings Inc. (NYSE:HRI) might not have the largest market cap around , it led the NYSE gainers with a relatively large price hike in the past couple of weeks. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Herc Holdings's outlook and valuation to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Herc Holdings appears to be overvalued by 24% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$145 on the market compared to our intrinsic value of $116.96. This means that the opportunity to buy Herc Holdings at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Herc Holdings's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Herc Holdings Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Herc Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? HRI's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe HRI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on HRI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for HRI, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing Herc Holdings at this point in time. Every company has risks, and we've spotted 3 warning signs for Herc Holdings (of which 1 doesn't sit too well with us!) you should know about. If you are no longer interested in Herc Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Herc Holdings (HRI) Gains Scale in Equipment Rentals After H&E Acquisition
Herc Holdings Inc. (NYSE:HRI) is one of the 10 most undervalued industrial stocks to buy according to analysts. On June 2, 2025, Herc completed its acquisition of H&E Equipment Services, a transaction that significantly strengthens its position in the equipment rental industry. Initially proposed in February, the deal offered H&E shareholders $78.75 in cash and 0.1287 shares of Herc stock per H&E share, valuing the offer at $104.89, and representing a 14% premium over a competing bid from United Rentals. H&E's board ultimately backed Herc's proposal, and following the completion, its shareholders now hold roughly 14% of the combined company. A construction crew working in the field with earthmoving equipment illuminated by a setting sun. The acquisition adds scale and reach to Herc's operations, positioning it in 11 of the top 20 U.S. rental markets. It also broadens its fleet, strengthens its specialty and general equipment offerings, and brings in a skilled workforce aligned with Herc's customer-focused culture. CEO Larry Silber noted that the deal sets the stage for accelerated growth and stronger long-term value creation. Reflecting confidence in Herc's outlook, Barclays analyst Adam Seiden reiterated a Buy rating on the stock on June 10, maintaining a $160 price target, among the highest on the street. Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with a fleet that includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. While we acknowledge the potential of HRI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
24-06-2025
- Business
- Business Insider
Citi Remains a Buy on Herc Holdings (HRI)
In a report released today, Kyle Menges from Citi maintained a Buy rating on Herc Holdings (HRI – Research Report), with a price target of $140.00. The company's shares closed today at $117.09. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Menges is a 3-star analyst with an average return of 4.6% and a 65.45% success rate. Menges covers the Industrials sector, focusing on stocks such as Cummins, Deere, and Oshkosh. Currently, the analyst consensus on Herc Holdings is a Moderate Buy with an average price target of $130.83, which is an 11.73% upside from current levels. In a report released on June 10, Barclays also maintained a Buy rating on the stock with a $160.00 price target.
Yahoo
03-06-2025
- Business
- Yahoo
Herc completes acquisition of H&E Equipment Services
Herc Holdings (HRI) announced that it has completed its acquisition of H&E Equipment Services d/b/a H&E Rentals. Under the terms of the merger agreement, Herc Rentals acquired all of the issued and outstanding shares of H&E's common stock for, on a per share basis, $78.75 in cash and 0.1287 shares of Herc Rentals common stock. With the completion of the transaction, shares of H&E common stock have ceased trading and will no longer be listed on the NASDAQ. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on HRI: Disclaimer & DisclosureReport an Issue Herc Holdings, H&E Equipment announce expiration of tender offer Herc Holdings extends tender offer to acquire H&E Equipment Herc Holdings Grants Retention Awards to COO Herc Holdings Announces Private Offering for Acquisition Herc announces expiration of HSR Act waiting period for H&E Equipment deal Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
