Atkore Inc. (ATKR): A Bull Case Theory

We came across a bullish thesis on Atkore Inc. on ValueInvestorsClub.com by showmethemoney. In this article, we will summarize the bulls’ thesis on ATKR. Atkore Inc.'s share was trading at $71.15 as of June 27^th.ATKR’s trailing and forward P/E ratios were 13.42 and 11.72, respectively, according to Yahoo Finance.

Atkore is a leading U.S.-based manufacturer of electrical infrastructure products like conduits, fittings, framing, and cables. Though its offerings are largely commoditized, the company has built a strong competitive edge through nationwide regional manufacturing centers that allow for rapid delivery, giving contractors logistical efficiency and eliminating the need for large on-site inventories. This operational advantage allows Atkore to charge a 5–10% premium and maintain a loyal customer base.

The company saw outsized gains during COVID, with supply chain disruptions and surging construction demand pushing 2022 revenue and EBITDA to 2x and 4x pre-COVID levels, respectively. However, since then, prices for key products like PVC and metal conduits have dropped due to an influx of international supply, leading to a 30% drop in revenue and a 50% decline in EBITDA by 2024.

Despite this, management sees signs that the worst is over, citing the classic cobweb effect—surplus supply is likely to exit the market as margins collapse, aided by rising tariffs on steel and aluminum imports. Meanwhile, Atkore continues to grow volumes, retain customers, and invest in higher-growth verticals like HDPE, cable management, water conduits, and solar torque tubing, while also benefiting from U.S. government broadband and infrastructure spending.

With capex mostly complete, future cash flow is set to be returned to shareholders. Atkore remains profitable with a strong balance sheet and trades at attractive valuation multiples, suggesting downside is limited. If market normalization or new growth areas materialize, the stock could see significant upside driven by margin recovery, buybacks, and strategic execution.

Previously, we covered a bullish thesis on Atkore Inc. by Hidden Market Gems and Waver in April 2025, which highlighted its strong U.S. distribution network, infrastructure tailwinds, and undervaluation. The company’s stock price has appreciated by approximately 29% since our coverage. Showmethemoney shares a similar view but emphasizes margin pressures, COVID-driven volatility, and upside from potential market normalization.

ATKR isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of ATKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.