Jim Cramer’s Hidden Gems: 10 Undervalued Stocks You Need to Know

7. MasterBrand, Inc. (NYSE:MBC)

Number of Hedge Fund Holders In Q3 2024: 25

Date of Cramer’s Comments: 8-26-24

Performance Since Then: -12.68%

MasterBrand, Inc. (NYSE:MBC) is a consumer cyclical stock that sells residential cabinetry items. Naturally, while the cabinetry-specific business model provides the firm with the benefits of customization it also exposes it to the effects of a high policy rate. The dependence of MasterBrand, Inc. (NYSE:MBC)’s shares on interest rates was clear in December when the stock closed 7.4% lower on the day of the Fed’s decision. On the flip side, it soared by a whopping 25.6% in July when investors piled into small-cap stocks on the back of softening inflation. MasterBrand, Inc. (NYSE:MBC) has acquired another firm this year, and the deal can enable it to generate future tailwinds by extending into the vanity sector. Cramer was aware of the link between the stock and the housing market as he shared:

“If we get a serious run in housing, then MasterBrand, formerly part of Fortune Brands, could really do well. They’re the maker of cabinets. We’ve used Aristokraft cabinets—they’re fine.”