10 Best Trading and Distribution Stocks to Buy

4. McGrath RentCorp (NASDAQ:MGRC)

McGrath RentCorp (NASDAQ:MGRC) is one of the 10 best trading and distribution stocks to buy.

On February 26, McGrath RentCorp (NASDAQ:MGRC) reported fourth-quarter revenue of $256.8 million compared to the consensus forecasts of $254.3 million. The company, under the leadership of its President and CEO, Joe Hanna, was pleased with the fourth-quarter results, which showed a 5% increase in revenue and a 14% jump in adjusted EBITDA. This was primarily driven by its Mobile Modular and TRS-RenTelco businesses.

Modular rental revenue grew 2% from commercial customers, while Portable Storage revenue grew 3%. TRS-RenTelco reported a 13% increase in rental revenue, driven by strong equipment sales, despite challenging conditions in the non-residential construction sector. However, Hanna was encouraged by the early 2026 results and was optimistic about building on the company’s progress in 2025.

On February 11, Barclays initiated coverage of McGrath RentCorp (NASDAQ:MGRC) with an Overweight rating. The firm also set a price target of $140, leading to an upside of almost 33% for investors. Barclays views McGrath as a relatively safer way to gain exposure to a potential recovery in U.S. non-residential construction compared with other early-cycle turnaround names.

McGrath RentCorp (NASDAQ:MGRC) is a business-to-business rental company operating across four distinct segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. The company provides a versatile range of relocatable buildings, portable storage containers, and specialized electronic test equipment, serving critical sectors including education, construction, healthcare, aerospace, and defense.