Factors that Dragged H&E Equipment Services (HEES) in Q2

Invesco Distributors, Inc., an investment management firm, released its “Invesco Discovery Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund outperformed its benchmark in the second quarter. The relative performance was primarily driven by stock selection. In the quarter, the leadership of large-cap growth stocks persisted, while value, mid-cap, and small-cap stocks experienced declines.  In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Invesco Discovery Fund highlighted stocks like H&E Equipment Services, Inc. (NASDAQ:HEES) in the second quarter 2024 investor letter. H&E Equipment Services, Inc. (NASDAQ:HEES) is an integrated equipment services company. The one-month return of H&E Equipment Services, Inc. (NASDAQ:HEES) was -0.19%, and its shares gained 13.51% of their value over the last 52 weeks. On September 27, 2024, H&E Equipment Services, Inc. (NASDAQ:HEES) stock closed at $48.06 per share with a market capitalization of $1.755 billion.

Invesco Discovery Fund stated the following regarding H&E Equipment Services, Inc. (NASDAQ:HEES) in its Q2 2024 investor letter:

“H&E Equipment Services, Inc. (NASDAQ:HEES) is an equipment rental company. The stock underperformed following its first quarter report. Though revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) exceeded consensus estimates, profit margin fell short of expectations. More importantly, management reduced full year capital expenditure guidance as the company is seeing slowing in the general construction rental market.”

A crane rental operator loading parts onto a construction site in an industrial area.

H&E Equipment Services, Inc. (NASDAQ:HEES) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held H&E Equipment Services, Inc. (NASDAQ:HEES) at the end of the second quarter which was 16 in the previous quarter. H&E Equipment Services, Inc.’s (NASDAQ:HEES) total revenue rose by 4.5% to $376.3 million in the second quarter. While we acknowledge the potential of H&E Equipment Services, Inc. (NASDAQ:HEES) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed H&E Equipment Services, Inc. (NASDAQ:HEES) and shared Choice Equities Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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