5 Best US Stocks to Buy Now

2. The AZEK Company Inc. (NYSE:AZEK)

Number of Hedge Fund Holders: 31

The AZEK Company Inc. (NYSE:AZEK) is an Illinois-based firm that manufactures and sells construction products for residential, commercial, and industrial customers in the United States. 

Credit Suisse analyst Daniel Oppenheim initiated coverage of The AZEK Company Inc. (NYSE:AZEK) on April 5 with an Outperform rating and a $29 price target. The strong housing market and confidence in home values should increase the growth for building products companies, the analyst told investors in a research note. According to Oppenheim, The AZEK Company Inc. (NYSE:AZEK)’s EBITDA growth should result in further deleveraging.

On February 3, The AZEK Company Inc. (NYSE:AZEK) published its Q4 results, posting earnings per share of $0.18, above consensus by $0.02. Revenue over the period came in at approximately $260 million, up 22.34% from the prior-year quarter, topping market estimates by $3.01 million. 

Insider Monkey’s fourth quarter database suggests that 31 hedge funds were bullish on The AZEK Company Inc. (NYSE:AZEK), with combined stakes valued at $418.5 million. Anand Parekh’s Alyeska Investment Group held the largest position in the company, with 1.5 million shares worth more than $70 million. 

Here is what Baron Funds has to say about The AZEK Company Inc. (NYSE:AZEK) in its Q2 2021 investor letter:

“The AZEK Company Inc.: AZEK is a leading manufacturer of outdoor, non-wood building products including decking, railing, trim, and other leading outdoor products. 95% of cash flow is generated from the U.S. residential housing market. We believe the company has a compelling multi-year strategic growth plan that should result in strong share price appreciation in the next few years.”