Jeld-Wen Holding Inc (NYSE:JELD): A Bull Case Theory

We came across a bullish thesis on Jeld-Wen Holding Inc (JELD) on ValueInvestorsClub by Daigo. In this article we will summarize the bulls’ thesis on JELD. Jeld-Wen Holding shares were trading at $13.29 when this thesis was published, vs. closing price of $15.86 on Sep 20.

A contemporary banking center, its doors and windows a welcome for customers.

JELD-WEN Holding, Inc. (NYSE:JELD) sells doors, windows, boards, and other associated products. Investors should see JELD-WEN as a solid buy opportunity because to its tremendous margin growth potential, favorable long-term industry trends, and affordable pricing. The company’s present margins are significantly lower than those of its primary competitor, Masonite (DOOR). The majority of the margin gap reflects non-structural growth potential. The current management team, led by CEO Bill Christensen, is focused on improving operational performance and addressing past underinvestment in capital expenditures. With the objective of significantly boosting income, Christensen prioritizes internal expenses such as automation and facility upgrades.

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The long-term prognosis for JELD’s primary markets is likewise quite positive. The U.S. housing market is suffering a severe shortage as a result of years of underbuilding, and demand for new houses is being pushed by demographic trends such as the expansion of first-time homebuyers. Furthermore, the scarcity of existing houses has driven more consumers into new building, a crucial development sector for JELD-WEN.

JELD-WEN has a tremendous upside potential, with a target price of $30 per share over its current $16. The expected EBITDA for 2026 is $503 million, driven by an 11.5% consolidated Adjusted EBITDA margin and a 13.5% margin in North America. In a negative scenario, even with a 20% reduction in organic volumes, the stock might be valued at $11, representing a 17% downside. With tremendous cash generation potential and a new CEO focused on achieving margin improvements, JELD is an appealing prospect for investors seeking development.

JELD is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held JELD at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of JELD as an investment, our conviction lies in the belief that 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 as promising as JELD 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 is originally published at Insider Monkey.