JELD-WEN Holdings | JELD | Long at $4.02

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JELD-WEN Holdings JELD designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The stock has taken quite a beating since the rise in interest rates, and I think a reversal *may* be in sight in the next year as rates are slowly lowered - even if the market is forward-thinking and purely anticipating a new housing boom (which I highly doubt given the current home prices). Regardless, there is risk with this stock since it has relatively high debt (debt-to-equity of 2.61x). A Quick Ratio of 1.1 and Altman's Z Score of 1.9 puts JELD near a medium level of bankruptcy risk. The company has pretty good cash reserves and a forward P/E of 10x (current is negative), so growth is anticipated. Book value of $5.31.

A bear case here is a terrible earnings call in August 2025 due to the housing market slowing (i.e. people pausing home purchases/builds/repairs expecting interest rates to drop soon). That may plummet the stock near $1.00 or below, which would be a tremendous deal, *unless* the company fundamentals change (like bankruptcy).

Without a crystal ball, yet understanding the forward-thinking aspects of the market, JELD is in a personal buy-zone at $4.02 with some risks.

Targets into 2027:
  1. $5.40 (+34.3%)
  2. $8.50 (+111.4%)

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