MattGush/iStock via Getty Images Whenever I rate a company a Hold, I'm making the claim that the stock should perform more or less along the lines of the broader market for the foreseeable future. You can imagine my disappointment, then, when I noticed that shares of Miller Industries, Inc. ( MLR ), a firm that I rated a Hold back in early March of this year, dropped 2.7% since then while the S&P ...
MattGush/iStock via Getty Images Whenever I rate a company a Hold, I'm making the claim that the stock should perform more or less along the lines of the broader market for the foreseeable future. You can imagine my disappointment, then, when I noticed that shares of Miller Industries, Inc. ( MLR ), a firm that I rated a Hold back in early March of this year, dropped 2.7% since then while the S&P 500 ( SP500 ) is up 8.8%. Although this is disappointing, the good news is that since I originally rated it a Hold in September of last year, the stock has risen 12.6%. The S&P 500 is just barely ahead, having risen 13.8% in that same timeframe. Fundamentally speaking, the firm has faced some challenges as of late. The first quarter of the 2026 fiscal year saw a plunge in revenue, profits, and cash flows. And based on the data that management has provided, 2026 will look a lot worse than 2025 did. The good news is that the company has a very solid balance sheet . But that doesn't change the fact that its forward valuation is more in alignment with the fair value range than it is with the undervalued range. Given this, I believe that maintaining it as a Hold is the appropriate course of action. Checking in on Miller Industries With a market capitalization of $530.7 million, Miller Industries is not exactly a giant of industry. The firm has only 1,500 employees globally. And yet, it still considers itself to be the largest manufacturer of towing and recovery equipment on the planet. Examples of what it produces include light-duty recovery vehicles, car carriers, medium and heavy-duty recovery vehicles, specialty transport vehicles such as those capable of transporting shipping containers, rotators, and military recovery equipment. Miller Industries Despite its market-leading position, with major brands such as Century, Vulcan, Chevron, Holmes, Challenger, Champion, and more, this global business, with operations throughout the U.S., Canada, Mexico, and elsewhere, has seen som...