VMI - McGrath RentCorp: It Makes Sense To Buy The Pessimism

2025-06-30 11:23:23 ET

One company that has fallen short of my expectations for quite some time now has been McGrath RentCorp ( MGRC ). In case you aren't familiar with the enterprise, it serves as a diversified rental company that rents out relocatable modular buildings, portable storage containers, and even electronic test equipment. After its failed merger with WillScot Holdings Corporation ( WSC ), I argued in March of this year that the firm offered market beating potential. But since then, the stock has generated upside for investors of only 2.3% at a time when the S&P 500 (SP500) is up 10.2%. Fortunately, since I first rated it a Buy in June 2022, shares have achieved upside for investors of 47.3%. That's a hefty return, but it does beat the S&P 500 by just a hair, with that index climbing 46.8%....

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