10 Hottest Mid-Cap Stocks So Far in 2025

1. H&E Equipment Services Inc (NASDAQ:HEES)

• YTD Performance: 82.29%

H&E Equipment Services Inc (NASDAQ:HEES) rents out heavy machinery used for construction and industrial usage. They also sell and service this equipment, but rentals are their bread and butter.

The recent bump was caused by United Rentals announcing that they would be buying this company for $4.8 billion on January 14. The current market capitalization is at $3.26 billion, so there’s still some money to be made by shareholders if this deal does materialize.

H&E reported total revenues of $384.9 million, which was actually down 4% from the previous year. Their net income also took a hit, dropping to $31.1 million from $48.9 million in the same quarter last year. Regardless, I believe the acquisition is what’s going to make or break the stock this year. The financials matter much less right now.

While we acknowledge the potential of HEES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HEES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 10 Hottest Mega-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025

Disclosure: None. This article was originally published at Insider Monkey.