Dj United Rentals Inc, Inst Holders, 2Q 2025 (Uri)

What Happened?

A number of stocks jumped in the morning session after an in-line inflation report fueled hopes for interest rate cuts and the U.S. and China agreed to extend their tariff truce. The Consumer Price Index (CPI), a key measure of inflation, came in largely as expected, holding steady at 2.7% year-over-year. This reading boosted investor optimism that the Federal Reserve will have room to lower interest rates at its next meeting, which could reduce borrowing costs for companies and consumers.

Adding to the positive sentiment, the U.S. and China extended their tariff truce for another 90 days. This development alleviates concerns about renewed trade tensions, which is a significant relief for industrial companies reliant on global supply chains and international sales. Together, these events create a favorable outlook for economic growth, benefiting cyclical sectors like industrials.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Ground Transportation company Saia jumped 4.1%. Is now the time to buy Saia? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company United Rentals jumped 4%. Is now the time to buy United Rentals? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company Herc jumped 6.3%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
• Construction and Maintenance Services company Construction Partners jumped 3.2%. Is now the time to buy Construction Partners? Access our full analysis report here, it’s free.
• Water Infrastructure company Energy Recovery jumped 3.4%. Is now the time to buy Energy Recovery? Access our full analysis report here, it’s free.

Zooming In On Herc (HRI)

Herc’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock dropped 17.9% on the news that the company issued a disappointing full-year forecast that overshadowed its second-quarter financial results. While the equipment rental company's revenue grew 18.2% year-over-year to $1.00 billion, it reported a net loss of $35 million. This loss stemmed primarily from $73 million in costs related to its acquisition of H&E Equipment Services and a $49 million asset impairment. The market reacted negatively to the company's updated guidance for the full year, with its revenue projection falling 15% below analyst expectations. The acquisition also increased Herc's debt load and pushed its net leverage ratio to 3.8x, amplifying concerns about the company's financial stability amid the costly integration process.

Herc is down 35.5% since the beginning of the year, and at $119.99 per share, it is trading 49.9% below its 52-week high of $239.28 from November 2024. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $2,896.

Let’s dig into the relative performance of United Rentals and its peers as we unravel the now-completed Q2 specialty equipment distributors earnings season.

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 8 specialty equipment distributors stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 2.6% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

United Rentals

Owning the largest rental fleet in the world, United Rentals provides equipment rental and related services to construction, industrial, and infrastructure industries.

United Rentals reported revenues of $3.94 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

Interestingly, the stock is up 8.8% since reporting and currently trades at $869.70.

Is now the time to buy United Rentals? Access our full analysis of the earnings results here, it’s free.

Best Q2: Hudson Technologies

Founded in 1991, Hudson Technologies specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $72.85 million, down 3.2% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $9.60.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Karat Packaging

Founded as Lollicup, Karat Packaging distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Karat Packaging reported revenues of $124 million, up 10.1% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 4.1% since the results and currently trades at $25.55.

Read our full analysis of Karat Packaging’s results here.

Herc

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings provides equipment rental and related services to a wide range of industries.

Herc reported revenues of $1.00 billion, up 18.2% year on year. This number topped analysts’ expectations by 6.9%. However, it was a slower quarter as it recorded full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Herc had the weakest full-year guidance update among its peers. The stock is down 26% since reporting and currently trades at $111.09.

Read our full, actionable report on Herc here, it’s free.

Alta

Founded in 1984, Alta Equipment Group is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $481.2 million, down 1.4% year on year. This print beat analysts’ expectations by 0.6%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 6.4% since reporting and currently trades at $7.60.

Read our full, actionable report on Alta here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.

This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here are three large-cap stocks with attractive long-term potential.

United Rentals (URI)

Market Cap: $55.27 billion

Owning the largest rental fleet in the world, United Rentals provides equipment rental and related services to construction, industrial, and infrastructure industries.

Why Are We Positive On URI?

• Annual revenue growth of 11.8% over the last five years was superb and indicates its market share increased during this cycle
• Highly efficient business model is illustrated by its impressive 25.8% operating margin, and its profits increased over the last five years as it scaled
• Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.1% exceeded its revenue gains over the last five years

United Rentals is trading at $859.99 per share, or 19.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

HCA Healthcare (HCA)

Market Cap: $89.29 billion

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

Why Are We Backing HCA?

• Unparalleled scale of $72.7 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
• Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
• Free cash flow margin grew by 8.9 percentage points over the last five years, giving the company more chips to play with

At $379 per share, HCA Healthcare trades at 14.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Cintas (CTAS)

Market Cap: $91.18 billion

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Why Is CTAS a Good Business?

• 8.3% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
• Share buybacks catapulted its annual earnings per share growth to 16.7%, which outperformed its revenue gains over the last five years
• Robust free cash flow margin of 16.5% gives it many options for capital deployment

Cintas’s stock price of $226.65 implies a valuation ratio of 46.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialty equipment distributors stocks fared in Q2, starting with SiteOne .

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 8 specialty equipment distributors stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 2.6% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

SiteOne

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

SiteOne reported revenues of $1.46 billion, up 3.4% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations but a slight miss of analysts’ organic revenue estimates.

“We are pleased to report continued solid results in the second quarter with 3% Net sales growth and 8% growth in Adjusted EBITDA1, despite softer end markets. We are executing our initiatives well, achieving excellent SG&A leverage, good gross margin improvement, and continuing to gain market share,” said Doug Black, SiteOne’s Chairman and CEO.

Interestingly, the stock is up 2.9% since reporting and currently trades at $132.30.

Is now the time to buy SiteOne? Access our full analysis of the earnings results here, it’s free.

Best Q2: Hudson Technologies

Founded in 1991, Hudson Technologies specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $72.85 million, down 3.2% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 15.4% since reporting. It currently trades at $9.59.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Karat Packaging

Founded as Lollicup, Karat Packaging distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Karat Packaging reported revenues of $124 million, up 10.1% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 6% since the results and currently trades at $25.06.

Read our full analysis of Karat Packaging’s results here.

Alta

Founded in 1984, Alta Equipment Group is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $481.2 million, down 1.4% year on year. This number beat analysts’ expectations by 0.6%. It was an exceptional quarter as it also logged a solid beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 8.4% since reporting and currently trades at $7.74.

Read our full, actionable report on Alta here, it’s free.

United Rentals

Owning the largest rental fleet in the world, United Rentals provides equipment rental and related services to construction, industrial, and infrastructure industries.

United Rentals reported revenues of $3.94 billion, up 4.5% year on year. This result topped analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is up 7.6% since reporting and currently trades at $859.99.

Read our full, actionable report on United Rentals here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.