Why is H&E Equipment Services, Inc. (HEES) one of the hottest mid-cap stocks so far in 2025?
We recently compiled a list The 10 hottest mid-cap stocks so far in 2025. In this article, we’ll take a look at how H&E Equipment Services, Inc. (NASDAQ: HEES ) stacks up against other mid-cap stocks.
If you’ve been following the usual suspects in the S&P 500, you might be missing some real action. Many mid-cap stocks have posted impressive gains in the first few weeks of the month, and the momentum is likely to continue.
We believe they will be more flexible than large-cap stocks. They’re worth watching because their valuations are relatively more attractive, and they also find the sweet spot between the stability of large-cap stocks and the growth potential of small-cap stocks.
The S&P MidCap 400 Index has outperformed the S&P 500 Index so far this year. This isn’t just a blip, either. Historically, mid-cap stocks have outperformed their larger and smaller peers in 55% of rolling five-year periods since 1983. .
Crane rental operators load parts onto construction sites in industrial areas.
H&E Equipment Services Inc (NASDAQ: HEES ) rents heavy machinery for construction and industrial purposes. They also sell and service the equipment, but rentals are their bread and butter.
The recent gains were driven by United Rentals’ announcement on Jan. 14 that it would acquire the company for $4.8 billion.
H&E reported total revenue of $384.9 million, which was actually down 4% from the previous year. Their net profit also took a hit, falling to $31.1 million from $48.9 million in the same period last year. Regardless, I believe this acquisition will determine the stock’s success or failure this year. Financial status is less important now.
Overall HEES Ranked first Join our list of the hottest mid-cap stocks so far in 2025. If you’re looking for AI stocks that are more promising than HEES but trade at less than 5x its P/E, check out our article on The Cheapest Artificial Intelligence Stocks.
Read next: The 10 hottest mega-cap stocks so far in 2025 The 10 hottest large-cap stocks so far in 2025
