8 Most Undervalued Industrial Stocks to Buy According to Analysts

4) WillScot Holdings Corporation (NASDAQ:WSC)

Forward P/E as of October 8: 18.35x

Number of Hedge Fund Holders: 53

Average Upside Potential: 26.06%

WillScot Holdings Corporation (NASDAQ:WSC), formerly known as WillScot Mobile Mini Holdings Corp., offers workspace and portable storage solutions in the US, Canada, and Mexico.

Wall Street analysts believe that investments in climate-controlled storage and Clearspan categories should drive growth into 2025. WillScot Holdings Corporation (NASDAQ:WSC) is confident in the sequential unit on rent growth and positive performance in value-added products and services. The company expects to maintain a medium-term operating range of 20% – 30% for FCF margin. WillScot Holdings Corporation (NASDAQ:WSC) anticipates a stronger sequential pickup in Q4 2024 as compared to the previous year, with expectation for record growth in 2025.

Notably, the larger projects offer a foundational level of demand, and the potential for interest rate cuts is expected to benefit the transactional side of the market. In the recent earnings call, WillScot Holdings Corporation (NASDAQ:WSC) highlighted that seasonal rentals continue to turn into longer-term commitments, leading to an acceleration in retail activity in Q4. The company expects that value-added products and temperature-controlled storage should drive YoY growth in the next year.

The company’s ability to provide flexible, temporary space solutions throughout various industries places it well to capitalize on potential economic recovery and improved construction activity.

As per Wall Street analysts, the shares of WillScot Holdings Corporation (NASDAQ:WSC) have an average price target of $52.20. ClearBridge Investments, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:

“Stock selection in industrials was the leading detractor from relative performance, as the prospect of a higher-for-longer interest rates environment weighed on investors’ outlooks for industrial and nonresidential construction. Also impacted was WillScot Holdings Corporation (NASDAQ:WSC), the North American leader in turnkey modular space and portable storage solutions. The company’s stock price pulled back amid a decline in nonresidential construction starts and a less optimistic outlook for short-cycle industrials. However, WillScot continues to have high cash flow yields and a strong order backlog, which should help the company to weather near-term headwinds.”