Leon Cooperman Stock Portfolio: Top 12 Picks

5. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Total Number of Shares Owned: 3,607,500

Total Value of Shares Owned: $135,786,300

Number of Hedge Fund Investors: 53

As North America’s largest provider of modular space and portable storage solutions, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) serves a variety of industries, including construction, healthcare, and education. This market leadership allows WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) to benefit from the rising demand for flexible space solutions, as evidenced by solid growth in leasing revenue in Q2 2024.

To enhance profitability,WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) has initiated organizational changes aimed at achieving $40 million in annual cost savings. These improvements focus on increasing sales efficiency, optimizing logistics, and leveraging technological advancements to boost margins. Furthermore, the recent acquisition of McGrath RentCorp is a strategic move that strengthens WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s market dominance, although it has faced some regulatory scrutiny. This acquisition demonstrates WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s commitment to expanding its presence in the market and creating synergies for growth.

Despite reducing its revenue and EBITDA guidance, the financial outlook remains positive, with analysts optimistic about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s strong cash flow generation. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) projects a free cash flow of approximately $700 million by 2026, offering an attractive yield for long-term investors. While short-term challenges such as softer demand and increased tax impacts may pose difficulties, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s strategic focus on efficiency, acquisitions, and cash flow generation supports a compelling investment case.

Omega Advisors, Inc. holds 3,607,500 shares of WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), valued at $135,786,300.

ClearBridge SMID Cap Growth Strategy stated the following regarding WillScot Holdings Corporation (NASDAQ:WSC) in its Q2 2024 investor letter:

“Stock selection in industrials was the leading detractor from relative performance, as the prospect of a higher-for-longer interest rates environment weighed on investors’ outlooks for industrial and nonresidential construction. Also impacted was WillScot Holdings Corporation (NASDAQ:WSC), the North American leader in turnkey modular space and portable storage solutions. The company’s stock price pulled back amid a decline in nonresidential construction starts and a less optimistic outlook for short-cycle industrials. However, WillScot continues to have high cash flow yields and a strong order backlog, which should help the company to weather near-term headwinds.”