Why These 15 Industrial Stocks Are up the Most So Far in 2025

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

Number of Hedge Fund Holders In Q4 2024: 14

H&E Equipment Services Inc (NASDAQ:HEES) is one of the largest equipment rental companies in the United States, serving the construction and industrial sectors with a broad range of rental equipment and related services.

The overwhelming reason for HEES’s stock surge in 2025 is the February announcement that Herc Holdings will acquire H&E in a cash-and-stock transaction valued at $104.89 per share, representing a substantial premium to the pre-announcement price. This news sent the stock soaring by more than 80% in a matter of days, with shares reaching an all-time high of $101.28 on February 18, 2025.

The deal followed H&E’s termination of a prior agreement with United Rentals after Herc submitted a superior offer, ultimately valuing H&E at $5.3 billion.

The merger is expected to generate $300 million in annual EBITDA synergies and will make Herc the third-largest rental company in North America. The only other notable event was H&E’s fourth-quarter and full-year 2024 earnings, reported in late February, which showed flat revenue and a 5.6% decline in adjusted EBITDA, but this was overshadowed by the acquisition news.

The stock is up significantly so far in 2025.

The consensus price target of $71.3 implies 20.1% downside.

HEES stock is up 82.97% year-to-date.