Three Reasons Why UHAL is Risky and One Stock to Buy Instead

StockStory11-21

Three Reasons Why UHAL is Risky and One Stock to Buy Instead U-Haul currently trades at $67.07 per share and has shown little upside over the past six months, posting a small loss of 0.7%. The ...

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The ...</p>\n\n<a href=\"https://finance.yahoo.com/news/three-reasons-why-uhal-risky-141505371.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Three Reasons Why UHAL is Risky and One Stock to Buy Instead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThree Reasons Why UHAL is Risky and One Stock to Buy Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 22:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/three-reasons-why-uhal-risky-141505371.html><strong>StockStory</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Three Reasons Why UHAL is Risky and One Stock to Buy Instead \n \n\nU-Haul currently trades at $67.07 per share and has shown little upside over the past six months, posting a small loss of 0.7%. The ...</p>\n\n<a href=\"https://finance.yahoo.com/news/three-reasons-why-uhal-risky-141505371.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4232","symbol_name":"货物陆运","start_time":0,"source_url":"https://finance.yahoo.com/news/three-reasons-why-uhal-risky-141505371.html","article_id":"2485844415","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/j2C_4zRHCeQgfEI3pA7Q1g--~B/aD03MDA7dz0xNDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/stockstory_922/64cfe38a278550724167a36fc47864e2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485844415","pubTimestamp":1732198505,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"U-Haul currently trades at $67.07 per share and has shown little upside over the past six months, posting a small loss of 0.7%. The stock also fell short of the S&P 500’s 11.6% gain during that period.Is now the time to buy U-Haul, or should you be careful about including it in your portfolio?Get the full stock story straight from our expert analysts, it’s free.We're sitting this one out for now. Here are three reasons why UHAL doesn't excite us and a stock we'd rather own.Founded by a husband and wife duo, U-Haul  is a provider of rental trucks and storage facilities.We hope U-Haul can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt.U-Haul doesn’t pass our quality test. With its shares trailing the market in recent months, the stock trades at $67.07 per share. At t","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4232":"货物陆运","BK4501":"段永平概念","UHAL":"U-Haul","BK4022":"陆运"},"translate_title":"UHAL有风险的三个原因以及值得购买的一只股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UHAL":1},"content_text":"Three Reasons Why UHAL is Risky and One Stock to Buy Instead \n \n\nU-Haul currently trades at $67.07 per share and has shown little upside over the past six months, posting a small loss of 0.7%. The stock also fell short of the S&P 500’s 11.6% gain during that period. \n Is now the time to buy U-Haul, or should you be careful about including it in your portfolio? \nGet the full stock story straight from our expert analysts, it’s free. \nWe're sitting this one out for now. Here are three reasons why UHAL doesn't excite us and a stock we'd rather own. \nWhy Do We Think U-Haul Will Underperform? \nFounded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities. \n1. Revenue Tumbling Downwards\nWe at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or product line. U-Haul’s recent history marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.2% over the last two years. U-Haul isn’t alone in its struggles as the Ground Transportation industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. \n\n\n\n2. New Investments Fail to Bear Fruit as ROIC Declines\nROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). \nWe typically prefer to invest in companies with high returns because it means they have viable business models, but the trend in a company’s ROIC is often what surprises the market and moves the stock price. Unfortunately, U-Haul’s ROIC has decreased over the last few years. We like what management has done in the past but are concerned its ROIC is declining, perhaps a symptom of fewer profitable growth opportunities. \n\n\n\n3. High Debt Levels Increase Risk\nDebt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. \nU-Haul’s $13.51 billion of debt exceeds the $1.44 billion of cash on its balance sheet. Furthermore, its 7x net-debt-to-EBITDA ratio (based on its EBITDA of $1.69 billion over the last 12 months) shows the company is overleveraged. \n\n\n\nAt this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company’s rating if profitability falls. U-Haul could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. \nWe hope U-Haul can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. \nFinal Judgment\nU-Haul doesn’t pass our quality test. With its shares trailing the market in recent months, the stock trades at $67.07 per share. At this valuation, there’s a lot of good news priced in - you can find better investment opportunities elsewhere. We’d suggest taking a look at Costco, one of Charlie Munger’s all-time favorite businesses. \nStocks We Would Buy Instead of U-Haul\nWith rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle. \nPut yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. \nStocks that made our list in 2019 include now familiar names such as Nvidia (+2,691% between September 2019 and September 2024) as well as under-the-radar businesses like United Rentals (+550% five-year return). Find your next big winner with StockStory today for free.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485844415"}