EquipmentShare.com Inc. (NASDAQ:EQPT) is one of Jim Cramer’s stock calls while he discussed the confusion surrounding the Trump-Iran conflict. Answering a caller’s query about the stock, Cramer remarked:
This stock is falling apart here. It’s not expensive. I’m going to endorse it. The stock is now going too low. Don’t buy it all at once. Something’s clearly wrong, but I know the stock is just too cheap. It’s crazy.
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
EquipmentShare.com Inc. (NASDAQ:EQPT) provides a digital platform for construction equipment rentals and sales, in addition to industrial tools and site management services. The company offers machinery parts, maintenance, and safety products. Cramer called it a “great story” during the January 26 episode, as he commented:
This is not the kind of stock you get hurt. It’s the kind of stock you buy, you put away. So, after that nice start, is EquipmentShare still worth owning? I gotta tell you, at 29 and change, EquipmentShare has a market cap of around 7.5 billion. Add in a little over 2 billion in net debt, and the company has an enterprise value of just under $10 billion… Using the midpoint of last year’s preliminary EBITDA numbers, this thing has what’s called an enterprise multiple… of 14.5. Alright, that doesn’t look too expensive to me on an absolute basis, not for a fast-growing disruptor in an attractive industry. Now, full disclosure, though, EquipmentShare is expensive compared to some of the top existing players in this equipment rental space… But I’m talking about growth here. I think it’s worth paying up for EquipmentShare’s growth, which seems like it’s come up with a much better model for an established industry, and has a three-year revenue compound annual growth rate of around 36%, compared to say 12% for United Rentals… See, that’s the real difference.
As I’ve told you again and again, I’m willing to pay more for a company with outsized growth. I’d be okay putting on a small position now, then hoping the stock comes down. Maybe you can buy a little bit more on weakness. Here’s how I see it: EquipmentShare’s debut marked the first meaningful IPO of 2026, and after looking more closely into the story, call me a fan. While the stock already trades at a premium against its more established equipment rental peers, it deserves to because it’s revolutionizing this industry with its asset-light business model and its impressive software platform…
The bottom line is, I think this is a great story and a stock I want to own. More broadly, the EquipmentShare IPO was a good test case for the IPO market in 2026. I got some worries about what might happen in the corner of the market when the big deals start dropping later this year. But in the meantime, I bet you could see more solid IPOs like EquipmentShare, ones that aren’t too expensive, have good growth, and are priced right in the sweet spot for both seller and buyer.
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