5 Low Profile Stocks that Surprised in 2021

4. The AZEK Company Inc. (NYSE:AZEK)

Number of Hedge Fund Holders: 38  

Gain in Share Price in 2021: 22%  

The AZEK Company Inc. (NYSE:AZEK) makes and sells building products. On December 15, JPMorgan analyst Michael Rehaut upgraded The AZEK Company Inc. (NYSE:AZEK) stock to Overweight from Neutral and raised the price target to $56 from $54, noting that the share price of the firm did not reflect the long-term prospects of the stock. The analyst forecast that The AZEK Company Inc. (NYSE:AZEK) would deliver residential sales growth of 20% in 2022 and 12% in 2023, driven by factors such as material conversion and capacity expansion for growth. 

The hedge fund sentiment around The AZEK Company Inc. (NYSE:AZEK) has been positive over the past few months as well. At the end of the third quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth $427 million in The AZEK Company Inc. (NYSE:AZEK), compared to 37 the preceding quarter worth $407 million.

In its Q2 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and The AZEK Company Inc. (NYSE:AZEK) was one of them. Here is what the fund said:

“The AZEK Company Inc.: AZEK is a leading manufacturer of outdoor, non-wood building products including decking, railing, trim, and other leading outdoor products. 95% of cash flow is generated from the U.S. residential housing market. We believe the company has a compelling multi-year strategic growth plan that should result in strong share price appreciation in the next few years.”