Hey everyone. So I wanted to introduce to you to some of my long term holds that I’ve been bullish on prior to the Infrastructure Bill being signed recently, but will greatly benefit from it. URI (United Rentals) and HRI (Herc Holdings) are two companies that specialize in heavy equipment rentals. Both of these stocks have been on a tear since 03/2020, and I don’t think they’ll be stopping anytime soon. With this bill in place to help with the repair of roads and bridges, both HRI and URI should see continued growth from this due in part that they are really two of the biggest suppliers of long term heavy equipment rentals required for such jobs to be completed.
But that isn’t the only thing the company relies on for equipment rental revenue. Ever been to a big event and seen a tent walled off with A/C units, heavy lighting, on-site caterers, band, etc? If you have, can you guess who is the go to for the rental of commercial A/C units and mobile generators to power all of that? If you guessed URI and HRI, then you guessed correct.
But then we also have to look at these stocks during times of natural disasters. Guess who tends to pop whenever a snowstorm in TX, hurricane in LA, or a tornado in AL causes havoc? If you guessed URI and HRI, then you’re two for two. Equipment rentals are massive during times of natural disasters.
Both of these companies also specialize in the selling of new and used equipment, tools, etc. so they have other revenue streams outside of just renting equipment.
So where does R (Ryder) and PAG (Penske) come into play? Well these two gems are responsible for providing the box trucks and flat beds used by construction crews on these infrastructure projects.
Both companies also have the benefit of always having people that will be moving, and thus require a moving truck rental. Or a business that has to utilize their truck rental services to temporarily replace one of their delivery units that may be down. If you also look at the monthly chart for these two, you can see they have been booming since 03/2020 as well.
So in summary, these are four stocks with nice long term potential with or without the Infrastructure Bill. I feel these companies will simply continue on in the future with the steady growth they’ve been showing for some time now.
NOTE: I have had holdings in these companies for some time now. Please do your own DD on these tickers before making any investments. This is not financial advice.