Herc Holdings Inc. (HRI) is trading at $136.65 with trailing and forward P/E ratios of 30.50 and 10.58 respectively. The company recently acquired H&E, expanding its network to 600 branches and capturing a 6% market share in the North American equipment rental market.

Industry consolidation and improved pricing discipline have boosted returns for top players like HRI, Ashtead (AHT), and United Rentals (URI). Rising rental penetration in the U.S., especially in specialty equipment, offers growth opportunities and higher margins. HRI’s M&A strategy focuses on value accretive acquisitions with potential for margin expansion.

HRI’s diversified end markets, variable cost structure, and strong capital discipline provide resilience during downturns. The company trades at an attractive 8x FY26 earnings, offering mid-single-digit rental growth and margin expansion. Strategic interest from private equity or larger peers could offer downside support for the stock.

Read more at Yahoo Finance: Herc Holdings Inc. (HRI): A Bull Case Theory