Here’s Why H&E Equipment Services, Inc. (HEES) Is Skyrocketing

We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where H&E Equipment Services, Inc. (NASDAQ:HEES) stands against the other small-cap stocks.

Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.

Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.

To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.

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

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

30-day Return as of January 16, 2024: 62%

HEES reached $89 on January 16, registering a 62% increase from its share price of $55.03 apiece on December 16, 2024. H&E Equipment Services, Inc. (NASDAQ:HEES) is one of the largest equipment services in the country and is known for its premium quality products.

The stock has surged following its deal to be acquired by United Rentals for $4.8 billion and is currently the talk of the town, as its premium valuation attracts investors.

HEES was founded in 1961 and serves a plethora of customers in the commercial and industrial markets through its 160 locations across the United States. The company has increased its revenue by nearly 6% year-over-year.

Overall HEES ranks 1st on our list of the small-cap stocks that are skyrocketing right now. While we acknowledge the potential of HEES as an investment, our conviction lies in the belief that certain 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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