10 Best Stocks to Buy According to Billionaire Mario Gabelli

2. Herc Holdings Inc. (NYSE:HRI)

Number of Hedge Fund Holders: 32

GAMCO Investors’ Stake: $212.2 million

Herc Holdings Inc. (NYSE:HRI) operates as an equipment rental supplier in the US and internationally. The company has completed 9 acquisitions with a total of 28 locations and managed to open 23 new greenfield locations for 12 months ended December 31, 2024, contributing to its strong market presence. Herc Holdings Inc. (NYSE:HRI)’s diversified operations and healthy national account capabilities have placed it well within the industry. Furthermore, it remains focused on gaining share through capturing an outsized position of the expected increased construction spending in 2025 by fleet investments, optimization of existing fleet, capitalizing of strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.

Herc Holdings Inc. (NYSE:HRI) and H&E Equipment Services, Inc. (doing business as H&E Rentals) have entered into a definitive merger agreement under which the former will acquire H&E. This transaction strengthens Herc Holdings Inc. (NYSE:HRI)’s position as the 3rd largest rental company in North America. Also, ~$300 million of annual EBITDA synergies are projected to be achieved by the end of year three after the close of the transaction. The transaction is anticipated to be high single-digit accretive to Herc Holdings Inc. (NYSE:HRI)’s cash EPS in 2026 and ramping to over 20% as synergies are fully realized.