We recently published a list of Why These 15 Construction Stocks Are Plunging in 2025. In this article, we are going to take a look at where JELD-WEN Holding, Inc. (NYSE:JELD) stands against other construction stocks that are plunging in 2025.
2025 is shaping up to be a pivotal moment for the construction industry. Not long ago, the sector was booming. Infrastructure construction stocks soared as government contracts poured in and a broader economic expansion fueled optimism. There were massive infrastructure and energy projects with endless growth potential, and companies tied to these projects thrived.
However, the pendulum has swung hard in the opposite direction. Today, the industry faces a stark slowdown, and those once-high-flying construction stocks are plunging. The U.S. GDP is expected to contract in Q1 2025, and residential and commercial projects are stalling as financing costs rise and demand weakens.
Looking ahead, the outlook is murky at best. Some experts predict a modest rebound in late 2025 if interest rates ease and loan activity picks up. But considering tariffs are only getting higher, this could drive up inflation again and cause interest rates to stay up.
These stocks have borne the brunt of the downturn. It’s worth looking into if you want a front-row seat to the industry’s ups and downs.
For this article, I screened the worst-performing construction stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Hedge Fund Holders In Q4 2024: 18
JELD-WEN Holding, Inc. (NYSE:JELD) makes interior and exterior building products like doors and windows.
The stock is down significantly so far in 2025 as JELD-WEN (NYSE:JELD) reported a fourth-quarter net loss of $68.4 million (compared to a $22.6 million loss the prior year) and a revenue decline of 12.3% year-over-year to $895.7 million.
The company also posted a 2025 revenue guidance of $3.2-3.4 billion. This implies a core revenue decline of 4% to 9%, which was below consensus estimates of $3.431 billion. The stock sold off sharply after the results were posted.
JELD-WEN (NYSE:JELD) faces significant headwinds from the U.S. housing market slowdown and reduced remodeling demand. The company operates with a high debt-to-equity ratio of 189.3%. For the full year 2024, JELD-WEN (NYSE:JELD) reported a net loss of $187.6 million and a revenue decline of 12.3% to $3.775 billion. Adjusted EBITDA fell by 27.6% year-over-year to $275.2 million.
The consensus price target of $9.06 implies 44.65% upside.
JELD stock is down 23.44% year-to-date.
Overall, JELD ranks 14th on our list of construction stocks that are plunging in 2025. While we acknowledge the potential of JELD 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 time frame. If you are looking for an AI stock that is more promising than 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.
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