67 WALL STREET, New York - December 30, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Leasing and Equipment Investment - International Consumption Growth - Professional Security Equipment
Companies include: United Rentals, Inc. (URI), H&E Equipment Services Inc. (HEES), Hertz Global Holdings, Inc. (HTZ) and many others.
In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Where do you spend your time in the rental and leasing space?
Mr. Coppola: I cover a few different segments that all touch the construction industry here and it's basically construction equipment services, household goods and services and E&C. And so out of all of my coverage, one of the most interesting things that we do is in the equipment rental space, and two of the stocks that I'm bullish on are United Rentals (URI) and H&E Equipment (HEES).
TWST: What makes the space interesting at this point?
Mr. Coppola: There's a lot of positive tailwinds in the equipment rental space, and I think United and H&E will benefit from secular and cyclical growth and consolidation due to economies of scale. And we can talk about each of those separately, but it really sets up for a positive environment over a period of years.
TWST: Here we are in a not particularly strong economy, is that going to work for these guys?
Mr. Coppola: I think the great thing about the rental industry is the power of asset sharing. And during cyclical downturns, contractors see the value of transforming a fixed cost to a variable cost, and with limited visibility in the marketplace, they choose to rent equipment rather than make capital outlays to purchase equipment. So that's a benefit at the bottom of the cycle.
But don't be fooled, these are cyclical stocks just with this secular characteristic. They benefit even more as the cycle turns. So you can graph nonresidential, put in place numbers with revenues at United Rentals or H&E, and they're certainly positively correlated.
TWST: Where are we in this cycle?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.