We recently published a list of 8 Best Low Float Stocks to Invest in Now. In this article, we are going to take a look at where U-Haul Holding Company (NYSE:UHAL) stands against other best low float stocks to invest in now.
Stocks with low public float refer to shares of a company that are available for trading by the public, but in relatively small quantities. The public float is the portion of a company’s shares that are not held by insiders, such as company executives, or major institutional shareholders who are usually long-term passive investors. When a stock has a low float, it can be more volatile because the smaller supply of shares means that even small changes in demand can significantly impact the stock price. For investors, this can present both opportunities and risks. While low float stocks may see large price movements, they can also be harder to trade, leading to higher spreads and less liquidity, which may be particularly painful when seeking to liquidate the investment. Consequently, investors need to be cautious with low float stocks and only buy them strategically with very high conviction.
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We believe that low float stocks become particularly attractive during times of heightened volatility, which usually happens amid pronounced geopolitical challenges or regime changes, when investors don’t know how to react to rapidly evolving circumstances. With the US stock market officially in correction territory and the implied volatility index more than 75% above the year-to-date lows, the current times perfectly fit our description of uncertainty. First, the markets have negatively reacted to the realization that tariffs will soon become a reality rather than a negotiation tool used by the new administration; the President further announced 50% tariffs on Canadian steel and aluminum, which caused some havoc among investors. On the positive side, some progress on the tariff-avoiding deal between the US and Canada, as well as the ongoing peace negotiations related to Ukraine in Saudi Arabia, provided some optimism and a boost for the stock market. Still, the picture remains dull for many investors who became accustomed to the high-growth 2023-2024 period, fueled by the AI megatrend.
A key piece of the puzzle to keep in mind when picking the right low float stock to invest in is the near- and mid-term outlook for the sector it operates in. It is well known that macroeconomic headwinds in the end market may mute even the most exceptional growth story, regardless of how strong the company’s moat is. We clearly see sluggish conditions in the construction sector, as new data shows a pronounced slowdown in both residential and commercial starts. With tariffs on construction materials kicking in, as well as the new administration being a headwind for immigration, we see this sector potentially remaining pressured for the near future. The consumer discretionary space could see slow growth as well in the upcoming quarters, as recent layoffs, as well as a tanking stock market, are very likely to make consumers more cautious with their spending. Finally, some niches in the industrial sector could also be pressured due to lower federal spending and the deteriorating Capex outlook reported by business surveys. The outlook on every other sector remains unchanged and could potentially nest some exceptional low float stocks to invest in right now.
Our Methodology
To compile our list of low float stocks, we used a Finviz screener to filter for companies that have less than 10 million shares floating for purchase. We then compare the sample with our proprietary list of hedge fund ownership and include the top 8 stocks with the highest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A line of rental trucks, trailers and portable units parked at a self-storage facility.
U-Haul Holding Company (NYSE:UHAL)
Number of Hedge Fund Holders: 30
U-Haul Holding Company (NYSE:UHAL) is a transportation and storage company primarily engaged in rental services for moving trucks, trailers, and self-storage units. It operates through a vast network of company-owned and independent dealer locations across the US and Canada. The company also provides related services, including moving supplies, hitch installations, and fuel sales. UHAL generates revenue through equipment rentals, storage unit leasing, and ancillary services catering to both individuals and businesses. Its operations support a wide customer base, ranging from do-it-yourself movers to commercial clients.
U-Haul Holding Company (NYSE:UHAL) reported Q3 earnings of $67 million, compared to $99 million for the same quarter last year, translating to $0.35 per nonvoting share versus $0.51 in the previous year. The company experienced positive equipment rental revenue growth of 4.5% for the quarter, showing improvement from the 1.5% and 1.7% growth rates in the first and second quarters. The self-storage segment demonstrated strong performance with revenues increasing by $17 million, representing an 8% increase for the quarter, while the company added 80,000 new units and maintained a healthy same-store occupancy rate of 92.4%. The U-Box business continues to show promising growth, contributing significantly to the $9 million increase in other revenue, with both moving transactions and storage transactions expanding.
U-Haul Holding Company (NYSE:UHAL) maintains a strong financial position with cash and loan facility availability totaling $1.348 billion at the moving and storage segment as of December 2024. Management expressed optimism about increased consumer optimism and its positive impact on the self-move business, while continuing to address fleet imbalances from COVID supply chain disruptions. The company is actively managing challenges related to electric vehicle mandates and regulations, maintaining a pragmatic approach to fleet modernization while focusing on customer needs and economic viability. UHAL has a low public float of only 7.67 million shares and is thus one of the best low float stocks to invest in now.
Overall, UHAL ranks 2nd on our list of best low float stocks to invest in now. While we acknowledge the potential of UHAL 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 time frame. If you are looking for an AI stock that is more promising than UHAL 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 is originally published at Insider Monkey.
