H&E Equipment Services (HEES) was Down 23% in Q2
Choice Equities Capital Management, a hedge fund manager, recently released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund lost -5.8% on a net basis bringing year-to-date gain to +7.5% compared to the Russell 2000’s -3.3% loss for the quarter and +1.7% gain for YTD. Since its inception in 2017, the fund has generated annualized gains of +13.5% versus +7.1% and +14.6% returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Choice Equities Fund highlighted stocks like H&E Equipment Services, Inc. (NASDAQ:HEES) in the second quarter 2024 investor letter. H&E Equipment Services, Inc. (NASDAQ:HEES) is an integrated equipment services company. The one-month return of H&E Equipment Services, Inc. (NASDAQ:HEES) was 20.15%, and its shares gained 7.24% of their value over the last 52 weeks. On July 31, 2024, H&E Equipment Services, Inc. (NASDAQ:HEES) stock closed at $52.30 per share with a market capitalization of $1.91 billion.
Choice Equities Fund stated the following regarding H&E Equipment Services, Inc. (NASDAQ:HEES) in its Q2 2024 investor letter:
"H&E Equipment Services, Inc. (NASDAQ:HEES) – H&E Equipment Services, Inc. was a primary detractor in the quarter, with shares down -23% on earnings day. 1Q results came in a bit lower than anticipated, partly hurt by weather early in the year and partly due to a lull in activity in their end markets while some of the larger mega-projects gear up to take the baton in construction activity. As highlighted previously, I believe the medium-term outlook remains attractive, as by all indication large project starts appear set to ramp in the second half of this year. With shares trading at <5x EBITDA, an attractive margin of safety remains."
A crane rental operator loading parts onto a construction site in an industrial area.
H&E Equipment Services, Inc. (NASDAQ:HEES) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held H&E Equipment Services, Inc. (NASDAQ:HEES) at the end of the first quarter which was 18 in the previous quarter. H&E Equipment Services, Inc.'s (NASDAQ:HEES) total revenue rose by 4.5% to $376.3 million in the second quarter. While we acknowledge the potential of H&E Equipment Services, Inc. (NASDAQ:HEES) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed H&E Equipment Services, Inc. (NASDAQ:HEES) and shared the list of stocks that are on hedge funds’ radar. In the Q1 2024 letter, Choice Equities noted that H&E Equipment Services, Inc. (NASDAQ:HEES) is expected to gain from rising infrastructure spending. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.