Still A Lot To Like About American Woodmark After The Big Selloff

The housing market is gaining strength. Rather than trying to isolate the top home builder, why not simply invest in a company that is a leader not only benefiting from the ramp up in new home construction, but also profiting from all the people remodeling their existing homes? American Woodmark is a current holding in my portfolio at FACTS Asset Management. The company only has 11 million shares floated in the public market and the company’s management continues to hold a large stake. Other fund managers have noticed the stock’s strong financials and are piling in. More than 300 funds are now showing positions in the stock, up over 50% from two years ago. AMWD is showing steady double digit revenue growth over the last year, the smallest quarterly earnings comparison vs. the prior year was 66%. The just reported quarter earnings slowed to just 19% .Everyone should have that problem. Companies, especially smaller ones, often sell off from time to time and give good entry points. The current market cap is barely $1 billion, still too small for the larger funds to buy yet.

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