We recently compiled a list of the 5 Stocks That Started The Year On A High. In this article, we are going to take a look at where H&E Equipment Services Inc. (NASDAQ:HEES) stands against the other stocks.
Anyone who’s looked at the market in the last couple of weeks will know that there were some events that shook investors. The revelation of DeepSeek AI’s capabilities resulted in record amounts wiped out from the valuations of many chip makers. Analysts have since then questioned the claims made by the Chinese, but most of the stocks haven’t been able to recover.
While geo-political issues looked to be dying down, Donald Trump initiated a tariff war by slapping tariffs on China, Mexico, and Canada. As a result, many stocks continue to tumble.
Despite all the above, the stock market boasted the best first 9 days of trading in a new presidential term since Barack Obama’s term started in 2013. This is incredible and continues to show the strength of the US economy.
We decided to come up with a list of stocks that helped the market post these amazing returns. To come up with our list of 5 stocks that started the year on a high, we only considered stocks with a market cap of at least $3 billion that outperformed the market in the month of January.
A crane rental operator loading parts onto a construction site in an industrial area.
H&E Equipment Services Inc. (NASDAQ:HEES)
H&E Equipment Services Inc. is an equipment services company that offers a range of equipment for rent to different industries. It operates through five segments including sales of rental equipment, parts sales, equipment rentals, repair & maintenance services, and sales of new equipment. The stock was up 56% in January. The surge in price came as a result of the news of the acquisition of HEES by United Rentals (URI) at $92 per share.
Right after the news broke, HEES’s stock price jumped from $43 to $90. Investors should note that there is a risk that regulatory authorities might not approve this acquisition even though Raymond James analysts think the risk is quite low. As stated by the analyst:
We see low regulatory risk, especially the somewhat nebulous definition of ‘equipment rental’.
In addition to regulatory risk, there is a chance of a higher bid for HEES, but it is unlikely to happen as the stock price is already high (more than double). As a part of the deal, HEES has the 35-day go-shop opportunity to find another potential acquirer offering a higher share price.
Overall HEES ranks 4th on our list of the stocks that started the year on a high. 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 timeframe. If you are looking for an AI stock that is as promising as HEES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
