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Is UHAL a good stock to buy? We came across a bullish thesis on U-Haul Holding Company on Valueinvestorsclub.com by durableadvantage. In this article, we will summarize the bulls’ thesis on UHAL. U-Haul Holding Company's share was trading at $51.60 as of May 1st. UHAL’s trailing and forward P/E were 109.79 and 67.11 respectively according to Yahoo Finance.

Photo by JOSHUA COLEMAN on Unsplash

U-Haul Holding Company operates as a do-it-yourself moving and storage operator for household and commercial goods in the United States and Canada. UHAL is currently at a cyclical trough, with multiple converging factors suggesting a meaningful earnings and valuation inflection that could drive 50–100% upside in the stock. The company’s recent underperformance has been driven by depressed moving segment earnings and concerns around heavy growth capex, but both dynamics are now reversing.

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Improving housing activity, supported by lower mortgage rates and stabilizing home prices, is beginning to lift demand, while a 20% decline in cargo van prices is set to reduce fleet costs and depreciation. Management has also signaled a clear pivot toward returns and cash flow, cutting fleet and real estate capex by 20–40%, which should materially improve free cash generation. The stock trades at 9–11x normalized economic EPS of $4.20–$5.00, or 8–9x when adjusting for development spend, with a credible path from $0.90 current EPS to normalized levels.

This upside is driven by cyclical recovery in moving earnings, normalization of depreciation and resale dynamics, and stabilization of a rapidly expanding self-storage portfolio, which continues to mature with embedded high-margin revenue growth. Importantly, the self-storage segment alone covers nearly the entire enterprise value, providing strong downside protection at 1.15x book value, while the dominant moving business is effectively undervalued.

With disciplined long-term ownership under CEO Joe Shoen and increasing focus on shareholder value, U-Haul presents a compelling asymmetric opportunity with limited downside and substantial upside as earnings and cash flow recover.

Previously, we covered a bullish thesis on Public Storage (PSA) by Antoni Nabzdyk in December 2024, which highlighted the company’s market dominance, strong profitability, and undervaluation within the self-storage sector. PSA’s stock price has appreciated by approximately 1.15% since our coverage. durableadvantage shares a similar view but emphasizes on cyclical recovery, cost normalization, and earnings inflection driving upside in U-Haul.

U-Haul Holding Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held UHAL at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of UHAL 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 UHAL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.