Ongoing Housing Weakness Pressured JELD-WEN (JELD) Stock in Q2

Miller Value Partners, an investment management company, released its “Deep Value Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of the year mirrored 2020, with tariff and Covid fears driving the VIX Index over 50 and the U.S. Economic Policy Uncertainty Index reaching an all-time high. In March 2025, the Economic Uncertainty Index peaked at 725, over 50% higher than in 2020. By April 8th, equity markets hit bottom and began recovering as both the Economic Policy Uncertainty and VIX Index started to decline. In the quarter, the Deep Value strategy had a -0.95% drawdown compared to +3.02% return for the S&P 1500 Value Index and +2.52% return for the S&P 600 Value Index. Year-to-date, the strategy's net returns are -13.63% vs +2.81% and -7.65%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Miller Value Deep Value Strategy highlighted stocks such as JELD-WEN Holding, Inc. (NYSE:JELD). JELD-WEN Holding, Inc. (NYSE:JELD) engages in the design, manufacture, and sale of wood, metal, and composite materials doors, windows, and related building products. The one-month return of JELD-WEN Holding, Inc. (NYSE:JELD) was 18.04%, and its shares lost 61.65% of their value over the last 52 weeks. On August 7, 2025, JELD-WEN Holding, Inc. (NYSE:JELD) stock closed at $5.43 per share, with a market capitalization of $463.739 million.

Miller Value Deep Value Strategy stated the following regarding JELD-WEN Holding, Inc. (NYSE:JELD) in its second quarter 2025 investor letter:

"Our two largest detractors during the quarter were JELD-WEN Holding, Inc. (NYSE:JELD) and Nabors Industries (NBR) and that were down 33% and 32% during the quarter, respectively. Both companies’ share prices are at deep discounts to what we believe is their long-term fundamental value, and we increased position sizes in both holdings during the quarter.

JELD-WEN is a leading North American and European manufacturer and distributor of interior and exterior doors and windows to the new construction and remodeling sectors.

The share price continued to be under pressure due to the ongoing housing weakness impacting company revenues and profitability. At the end of Q1, management took additional cost actions, which should amount to annual savings of $50M, along with $100M of estimated additional productivity savings for the year. These transformation initiatives have not yet caught up with revenue weakness, as company EBITDA margins are currently at historical trough levels. We expect to see EBITDA margins stabilize and improve over the coming 6-12 months."

JELD-WEN Holding, Inc. (NYSE:JELD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held JELD-WEN Holding, Inc. (NYSE:JELD) at the end of the first quarter, which was 18 in the previous quarter. While we acknowledge the potential of JELD-WEN Holding, Inc. (NYSE:JELD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered JELD-WEN Holding, Inc. (NYSE:JELD) and shared Miller Value Deep Value Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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