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Mario Gabelli Stays Bullish on Herc Holdings (HRI) Despite Near-Term Headwinds

Herc Holdings Inc. (NYSE:HRI) is one of the best stocks to buy according to billionaire Mario Gabelli.

Herc Holdings Inc. (NYSE:HRI) accounted for 1.52% of GAMCO Investors’ 13F portfolio value, as of the end of Q4 2025, and with a $158.3 million position, it is its fifth-largest holding. According to Insider Monkey’s 13F database, GAMCO Investors has held shares of Herc Holdings since at least Q3 2016, when it owned 2.48 million shares. The hedge fund reduced its shareholding in the stock by around 4% in Q4, owning about 1.07 million shares, down from 1.10 million in Q3.

Despite the cut, GAMCO Investors remained positive on the company’s outlook. In its Q4 2025 shareholder commentary, they said:

Herc Holdings Inc. (NYSE:HRI) delivered another strong quarter, supported by resilient rental demand, pricing discipline, and robust free cash flow generation. The company remains well-positioned to benefit from infrastructure-related spending and fleet optimization.

Photo by Ewan Buck on Unsplash

However, the stock’s performance has been weak throughout recent quarters. In 2025, the stock lost around 22% value, and the trend continued in 2026, with a year-to-date decline of over 18%. The primary reason appears to be the recent quarterly results, which hinted at revenue growth and margin pressures, as well as execution concerns over its recent $5.5 billion acquisition of H&E Equipment Services Inc. (the largest acquisition in the rental industry).

That said, Herc Holdings Inc.’s (NYSE:HRI) stock is a strong Buy based on the Buy ratings from 70% of analysts covering the stock, as of March 10. Its consensus 1-year median price target stands at $189, implying a 65% upside from the current levels.

Herc Holdings Inc. (NYSE:HRI) is an equipment rental supplier serving construction, industrial, and infrastructure markets across North America. The company provides a wide range of rental equipment, including aerial lifts, earthmoving machinery, material-handling equipment, and power-generation systems.

While we acknowledge the risk and potential of HRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HRI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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