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Is WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) the Best Self Storage Stock in the World?

We recently compiled a list of the 11 Best Self Storage and Apartment Stocks to Buy Now and in this article, we discuss whether WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is the best self-storage stock in the world.

The American dream of sprawling living spaces is undergoing a transformation. Increasing housing costs in densely populated areas and the rising need for frequent relocations have led more people to use self-storage facilities. Furthermore, as families expand and accumulate more belongings, the demand for additional storage space continues to grow.

The self-storage sector experienced many changes from 2020 to 2023. The pandemic fueled a boom, with users increasing by 970,000 and sales volume nearly tripling between 2020 and 2021. This boom was driven by relocations, remote work, and increased online shopping. However, 2022 saw moderation with declining home sales and consumer spending leading to slightly lower rental rates and a sales volume drop. The first three quarters of 2023 continued this trend, with economic factors contributing to a further downturn.

Looking ahead to 2024, the self-storage industry is expected to maintain stable occupancy rates and rental income, driven by the ongoing housing shortage. Although a slight uptick in new facilities (4.4%) is predicted, the housing shortage is likely to continue driving demand. According to Mordor Intelligence, the US self-storage market is projected to reach nearly $50 billion by 2029, reflecting a steady growth rate of 2.44%. This indicates continued investor confidence and a healthy market outlook.

Meanwhile, in the apartment sector, rent growth in 2024 is forecasted to be moderate, ranging from 2.5% to 3.7%. The sector is expected to experience slightly stronger growth in 2025. However, with the potential weakening of the labor market and increased supply, some areas may require rent concessions and reductions.

Overall, the US residential real estate market is experiencing steady growth, valued at $2.5 trillion in 2023. This positive trend is expected to continue as the valuation of this market is projected to reach $2.8 trillion by 2028. This jump in the valuation of the residential real estate market translates to a compound annual growth rate (CAGR) of 2.04% during the forecast period. Apartments hold a substantial share of the sector’s total demand. This dominance is likely due to the high number of apartment units being completed, with completions up by 26% as of 2023.

An exterior view of a large self-storage facility in the US.

Our Methodology

We have compiled a list of the best self-storage and apartment stocks to buy based on hedge fund sentiment toward each stock. Our assessment of hedge fund sentiment is derived from Insider Monkey’s database of 919 elite hedge funds as of the first quarter of 2024. The best self-storage and apartment stocks to buy have been ranked in ascending order of the number of hedge fund investors in each company.

“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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).”

Is WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) the Best Self Storage Stock in the World?

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Number of Hedge Fund Holders: 66

WillScot Mobile Mini Holdings Corp (NASDAQ:WSC), headquartered in Phoenix, Arizona, is a leading provider of temporary space solutions. The company offers a wide range of options, including modular offices, mobile classrooms, and storage units. It serves diverse markets across North America with a network exceeding 240 locations.

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) recently reported its Q1 2024 earnings results. Revenue grew by 3.8% YoY to $587.2 million, exceeding analysts’ expectations by 1.1%. However, net income fell by 26% to $56.2 million, resulting in a lower profit margin (9.6%) compared to the previous year (14%). This decline in profitability led to an EPS of $0.30.

Despite the drop in earnings, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) projects revenue growth of 11% annually over the next 3 years, outpacing the expected 7.9% growth for the US construction industry.

Analysts are bullish on WillScot Mobile Mini Holdings Corp. (WSC) with a “Strong Buy” consensus rating. The average price target reflects a potential upside of over 27%. This indicates strong confidence in the company’s future prospects.

Here’s what Silver Beech Capital said about WillScot Mobile Mini Holdings Corp (NASDAQ:WSC) in its Q1 2024 investor letter:

“We recently initiated a new position in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC). WillScot is the leading North American provider of portable and turnkey modular building units and storage space. WillScot’s 156k modular units and 212k portable storage units are leased to a diverse 80k+ customer base across industrial, infrastructure, education, government, and natural resources users. WillScot’s modular products are depicted in Figure 2 below.

WillScot’s products are mission-critical and possess minimal technological or obsolescence risk. On a large construction site, project managers work in modular units where they update and store site-specific documents (work orders, safety reports, etc.). WillScot also offers customers an extensive array of value-added products and services (“VAPS”). These VAPS include unit furnishings, air conditioning, solar panels, restrooms, tech hardware, and many other add-ons. WillScot’s extensive offerings help fulfill a structural shift in customer demand for flexible modular and reduced waste/lower carbon footprint solutions…” (Click here to read the full text)

Overall, WillScot Mobile Mini Holdings Corp (NASDAQ:WSC) ranks 1st among the 11 best self-storage and apartment stocks to buy now. You can visit the 11 Best Self-Storage and Apartment Stocks to Buy Now to see the other self-storage and apartment companies that are on the hedge fund radar.

While we acknowledge the potential of self-storage and apartment stocks, 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 more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure. None. This article is originally published on Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

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From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

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This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

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AI is at a similar inflection point.

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The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

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J.P. Morgan’s warns of “most predictable crisis in history”

Dear Concerned Citizen,

In President Reagan’s farewell address, he called America a “Shining City on a Hill.”

And in many ways, America still is shining.

We have supersized homes, two cars in every garage, and more food to eat than any country in history.

We have smartphones, tablets, laptops, AI assistants, VR headsets and flatscreen tv’s that stream any entertainment we could think of on demand.

Many of us even have swimming pools, maids to clean our houses, nannies to watch our kids, and landscapers to manicure our lawns.

But despite all these shiny things…

There are massive cracks forming right below the surface of our “shining city.”

Cracks that threaten us with a widespread collapse unlike anything we’ve seen in our lifetimes.

During this presentation, I’m going to show you exactly what these cracks are and what’s really causing them.

I’m also going to show you why these cracks will only get worse, regardless of who’s President. 

Why?

Because these cracks are a symptom of a much bigger problem.

A problem that threatens the very foundation of our country.

What may shock you is that this problem was indirectly caused by President Reagan.

His greatest triumph has turned out to be our biggest curse.

A curse that is now cracking the very foundation of our great country.

And there’s absolutely nothing that can be done to stop these cracks from continuing to weaken our foundation until we collapse.

There’s no government stimulus package big enough…

No interest rate cut dramatic enough….

And no tax cut deep enough to stop the inevitable.

The only thing you can do is prepare for it.

In the end, we will see the market tumble 50%, real estate plummet 40%, savings accounts lose 30% and unemployment triple.

Click to continue reading…