We recently compiled a list of the 10 Hottest Mid-Cap Stocks So Far in 2025. In this article, we are going to take a look at where H&E Equipment Services, Inc. (NASDAQ:HEES) stands against the other mid-cap stocks.
If you’ve been fixated on the usual suspects in the S&P 500, you might be missing out on some solid action. Many mid-cap stocks have been delivering stellar gains in the first few weeks of this month, and there’s a good chance the momentum will stick around.
We believe they’ll prove to be more nimble than the large-cap stocks. It’s worth looking at them because they are comparatively trading at more attractive valuations and they also strike the sweet spot between the stability of large caps and the growth potential of small caps.
The S&P MidCap 400 index has outpaced the S&P 500 index year-to-date. It’s not just a flash in the pan, either. Historically, mid-caps have outperformed both their larger and smaller counterparts in 55% of rolling five-year periods since 1983. As such, it’s worth looking deeper into each top mid-cap performer.
A crane rental operator loading parts onto a construction site in an industrial area.
H&E Equipment Services Inc (NASDAQ:HEES) rents out heavy machinery used for construction and industrial usage. They also sell and service this equipment, but rentals are their bread and butter.
The recent bump was caused by United Rentals announcing that they would be buying this company for $4.8 billion on January 14. The current market capitalization is at $3.26 billion, so there’s still some money to be made by shareholders if this deal does materialize.
H&E reported total revenues of $384.9 million, which was actually down 4% from the previous year. Their net income also took a hit, dropping to $31.1 million from $48.9 million in the same quarter last year. Regardless, I believe the acquisition is what’s going to make or break the stock this year. The financials matter much less right now.
Overall HEES ranks 1st on our list of the hottest mid-cap stocks so far in 2025. While we acknowledge the potential of HEES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HEES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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