Herc Holdings (HRI) Trails S&P 500; Analysts Recommend Selling on Margin Erosion

Herc Holdings (HRI) has underperformed the S&P 500, returning just 3.2% since November 2025, and analysts at StockStory now recommend selling the shares. The equipment rental firm’s operating margin contracted 7.2 percentage points over five years to 11.2% trailing, even as revenue grew 18% over the past two years. During the same two-year stretch, earnings per share fell 28% annually. Return on invested capital also declined, pointing to fewer profitable growth opportunities. At 21.2 times forward earnings, HRI lacks immediate upside, the report states, and it suggests a dominant aerospace acquirer as a more attractive buy.