MGRC provides rentals of storage containers and modular structures, like those used for schools. Tariff uncertainty slowed container rentals last quarter, yet the company still reported 23% increase in EPS and was able to aggressively retire debt without drawing cash reserves. It trades at 18x earnings, 2.5x book and supports a ROE of 22%. We recommend setting a stop-loss at $106, looking to achieve $144 -- upside potential of 22%. Yield 1.6%
Our PAST TOP PICK with MGRC has triggered its stop at $106. To remain disciplined, we recommend covering the position at this time.