HRI Should I Buy
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Herc Holdings Inc (HRI) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown revenue growth and optimistic outlooks, its recent financial performance, technical indicators, and lack of strong trading signals suggest that waiting for a clearer entry point would be more prudent.
The MACD is negatively expanding, indicating bearish momentum. RSI is at 21.16, suggesting the stock is nearing oversold territory but not yet providing a clear buy signal. Moving averages are converging, and the stock is trading below key support levels (S1: 149.543, S2: 138.958), indicating potential further downside.
The company reported strong revenue growth of 27.13% YoY in Q4 2025, driven by a 24% rise in equipment rental revenue. Successful integration of its largest acquisition in 2025 and an optimistic outlook for 2026 are also positives. Analysts maintain optimistic ratings with price targets significantly above the current price.
Net income dropped significantly (-152.17% YoY) in Q4 2025 due to acquisition costs. EPS also fell sharply (-143.83% YoY), and gross margin declined by 24.12% YoY. Technical indicators suggest bearish momentum, and the stock has underperformed following its Q4 results. Analysts have lowered price targets recently, citing choppy business conditions and integration headwinds.
In Q4 2025, revenue increased to $1.209 billion, up 27.13% YoY. However, net income dropped to $24 million (-152.17% YoY), and EPS fell to $0.71 (-143.83% YoY). Gross margin also declined to 27.05%, down 24.12% YoY, reflecting challenges in profitability despite revenue growth.
Analysts maintain positive ratings with price targets ranging from $175 to $200. However, recent target cuts reflect concerns about integration headwinds and choppy business conditions. Optimism remains for margin expansion and non-residential growth, but near-term challenges persist.
