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Now onto this week’s featured stock—H&E Equipment (HEES), a rental company that provides equipment for construction, earthmoving and material handling. The stock first popped on my radar in Nov 2023 when I ran a UVstocks screen on the Russell 2000 index. The company stood out as bullish and undervalued across the board, giving it a very high Convergent Stock Rating (CSR) close to 5.0, meaning analysts across multiple stock sites were saying “buy” or “strong buy.” The fundamentals and financial ratios were also strong. All of this served as a starting point for me to conduct further research. From the company website:
Founded in 1961, H&E is one of the largest equipment rental companies in the nation, providing the higher standard in equipment rentals. With locations across the United States, we’re leveraging our national fleet of equipment with a local approach, working closely with customers to understand their needs and provide them reliability, fair prices, and the support of a first-class service team. We’re an equipment company, run by equipment people. Where others stop, we continue.
Over $1 billion in total revenue
More than 160 locations nationwide
A Best Places to Work award recipient
America's 100 Most Trustworthy Companies according to Forbes
One of the largest and fastest-growing rental companies in the U.S.
Ranked #5 of the Top 100 Equipment Rental Companies in the United States by RER
Frankly, without the CSR data point, I would never have discovered HEES in the first place, let alone go to the website to learn, by all accounts, that H&E is likely a good, solid company. Perhaps the company is headed toward breakthrough and becoming a great company with consistent industry performance while maintaining focus on its people and constantly building and reinforcing a culture of trust. And as it turns out, the local H&E facility in my city had a 4.7 out of 5 rating with stellar reviews and comments like “best rental company I’ve ever used...” Given the high CSR rating along with my own research, I bought a fairly large position in Nov 2023 and continued to dollar cost average weekly ever since, scooping up more shares when the price happened to dip while always tracking earnings performance, fundamentals and analyst sentiment along the way.
“Keeping up with a company in which you own stock is like playing an endless stud-poker hand.” – Peter Lynch, One Up on Wall Street
Below is a trade I made via the Public.com app in May 2024.
