We came across a bullish thesis on Atkore Inc. (ATKR) on Substack by Hidden Market Gems and Waver. In this article, we will summarize the bulls’ thesis on ATKR. Atkore Inc. (ATKR)’s share was trading at $54.99 as of April 3rd. ATKR’s trailing and forward P/E were 5.29 and 8.75 respectively according to Yahoo Finance.
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Atkore Inc. stands out as a leading manufacturer of essential electrical infrastructure and safety products serving construction and industrial markets, with a business model built around producing and distributing high-demand hardware like conduits, cable management systems, and metal framing. Operating through two primary segments—Electrical and Safety & Infrastructure—Atkore has cemented its position across non-residential construction and renovation, with dominance in U.S. product categories supported by a nationwide manufacturing and distribution footprint. The company’s products, including plastic and PVC conduits, metal electrical fittings, cable trays, and framing systems, are mission-critical components that ensure safe and reliable power delivery and infrastructure stability, creating a recurring and resilient demand base.
Atkore primarily distributes through large electrical supply networks, relying on key partners like Graybar, Sonepar, and Wesco, which together account for a significant portion of sales. With 83% of sales through distribution and over 90% of revenue coming from the U.S., the company’s tight grip on its core market gives it a strong moat. Its international footprint is growing but remains secondary. Competitive threats do exist—especially in commoditized product lines—but Atkore’s scale, breadth, and ability to serve as a one-stop shop provide meaningful defense. Its infrastructure-focused portfolio is perfectly positioned to ride multiple macro tailwinds: the $1.2 trillion IIJA infrastructure bill, the EV charging station buildout, grid modernization efforts, and explosive growth in data centers fueled by AI and 5G. These trends offer a structural lift to long-term demand for Atkore’s products, from electrical conduits to mechanical tubing.
While 2023 saw a drop in revenue due to pricing normalization, organic volume improved, and the company remains focused on expanding capacity, innovating product lines, and pursuing bolt-on acquisitions. Guidance into 2025 includes a long-term EPS target above $18, though actual projections suggest a more modest EPS range of $5.75–$6.85. Even using conservative assumptions, Atkore trades at a compelling free cash flow yield of ~14.3%, well above Treasury yields, indicating undervaluation on a cash generation basis. To justify a 15% CAGR under a realistic 7–9% EPS growth trajectory, shares would need a re-rating. Without that, a mid-teen multiple feels aggressive, but the valuation remains attractive nonetheless. With the market overlooking Atkore’s positioning in massive secular themes and its fortress-like distribution and manufacturing network, the stock presents a mispriced opportunity. Investors are offered a rare combination of infrastructure exposure, structural growth, robust cash flows, and valuation support—with the potential for rerating as macro catalysts play out.
Atkore Inc. (ATKR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held ATKR at the end of the fourth quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of ATKR 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 timeframe. If you are looking for an AI stock that is more promising than ATKR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.