We are adding AMERCO (UHAL) to the top of our Best Idea Long list, as it is the best Signal Strength long right now on our Position Monitor (Figure 1 below) over a Trade/Trend and signaling higher highs:
- A full replay of our original Black Book presentation can be viewed HERE
- Additionally upon further review and some very valuable feedback, we were probably too punitive on the EBITDA margin correction in FY23 from peak numbers, as the larger percentage contribution from higher-margin self-storage revenue will offset at least some of the anticipated correction in equipment rental results
- Our prior call for upside to $700/share was too conservative, we think $800/share makes more sense after re-cutting the numbers
- Unlike most REITs, UHAL is a GREAT Quad 2 stock (Figure 2 below) and the signals, which always trump the Quads, are telling us where to go. Let it rip
Figure 1: Hedgeye REITs Position Monitor
Figure 2: UHAL GIP Quad Backtest
Please e-mail with any questions.
Rob Simone, CFA
Managing Director
Twitter: @HedgeyeREITs
