JMEE's Underlying Holdings Could Mean 15% Gain Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2025
0mins
Source: NASDAQ.COM
ETF Analysis: The JPMorgan Market Expansion Enhanced Equity ETF (JMEE) has an implied analyst target price of $71.40, indicating a potential upside of 14.59% from its current trading price of $62.31.
Stock Performance Insights: Notable underlying holdings such as Quanex Building Products Corp, Goodyear Tire & Rubber Co., and Ichor Holdings Ltd show significant upside potential based on analysts' target prices, raising questions about the validity of these targets amidst market developments.
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Analyst Views on NX
Wall Street analysts forecast NX stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 15.860
Low
28.00
Averages
28.00
High
28.00
Current: 15.860
Low
28.00
Averages
28.00
High
28.00
About NX
Quanex Building Products Corporation is a manufacturer and component supplier to original equipment manufacturers in the building products industry, including window, door, solar, refrigeration, custom mixing, building access, and cabinetry markets. It also provides solar panel sealants, trim moldings, water retention barriers, conservatory roof components, and commercial access solutions. The Hardware Solutions segment manufactures engineered window and door hardware, screens, and other fenestration components primarily serving the residential and light-commercial building markets. The Extruded Solutions segment manufactures insulating-glass spacers, vinyl and composite profiles, and sealing solutions used in the fabrication of windows, doors, conservatories, roofs, and related building applications. The Custom Solutions segment delivers a range of engineered product solutions across wood, metal, and elastomeric materials that serve residential, commercial, and industrial end markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Q1 Earnings Review of Home Construction Materials Sector
- Quanex Earnings Highlight: Quanex (NYSE:NX) reported revenues of $462.4 million, a 2.2% year-over-year increase, exceeding analyst expectations by 0.6%, yet faces inflationary pressures and geopolitical conflicts, with expectations to recover some margins in the second half of the year.
- Simpson's Strong Performance: Simpson (NYSE:SSD) achieved revenues of $588 million, up 9.1% year-over-year, outperforming analyst expectations by 6.4%, although the stock has remained stable, indicating that the market had already priced in these results.
- Griffon's Weak Report: Griffon (NYSE:GFF) reported revenues of $421.9 million, down 1.1% year-over-year, despite exceeding analyst expectations by 1.8%, but missed full-year revenue and EBITDA guidance, resulting in a 1.9% decline in stock price.
- Hayward's Strong Growth: Hayward (NYSE:HAYW) reported revenues of $255.2 million, an 11.5% year-over-year increase, surpassing analyst expectations by 6.5%, yet the stock fell 10.7%, reflecting market caution regarding future growth prospects.
See More
Quanex Reports Q2 2026 Earnings with Mixed Results
- Sales Growth: Quanex Building Products Corp reported net sales of $462.4 million in Q2 2026, reflecting a 2.2% increase from $452.5 million in Q2 2025, driven by favorable pricing, tariff pass-throughs, and foreign exchange translation, although overall profitability remains under pressure.
- Net Income Decline: The company reported a net income of $3.4 million for Q2 2026, translating to $0.07 per diluted share, a significant drop from $20.5 million and $0.44 per diluted share in the same period of 2025, highlighting the impact of sharp increases in raw materials and logistics costs.
- Adjusted EBITDA Drop: Adjusted EBITDA fell to $44.2 million from $63.1 million year-over-year, primarily due to reduced operating leverage and inflationary pressures, indicating challenges in cost management for the company.
- Strong Liquidity: As of April 30, 2026, Quanex maintained a strong liquidity position of $328.6 million, with plans to reduce the net leverage ratio by year-end, despite facing challenges from inflation fatigue and geopolitical uncertainties affecting market confidence.
See More
Quanex Building Products Q2 2026 Earnings Call Insights
- Market Demand Stabilization: Housing demand in North America and Europe shows early signs of stabilization, but management expects no sharp rebound in the near term, indicating the need for the company to remain cautious in the face of potential sales pressures.
- Gross Margin Decline: Gross margins fell 350 basis points year-over-year in Q2, primarily due to sharp increases in raw materials and logistics costs, with Hardware Solutions being the hardest hit, reflecting challenges in cost control for the company.
- Sales and Income: The company reported net sales of $462.4 million in Q2, with a net income of $3.4 million or $0.07 per diluted share, and an adjusted net income of $11.3 million or $0.25 per diluted share, demonstrating efforts in revenue growth while still facing cost pressures.
- Cautious Outlook: The company is not reaffirming its guidance for fiscal 2026, expecting Q3 revenue to be flat to up 1% and adjusted EBITDA margin to be flat to up 25 basis points, reflecting management's cautious stance amid market uncertainties.
See More
Quanex Reports Decline in Q2 Earnings Despite Sales Growth
- Earnings Decline: Quanex Building Products Corp. reported a net income drop to $3.4 million, or $0.07 per share, down from $20.5 million and $0.44 per share a year ago, indicating a significant weakening in profitability.
- Adjusted Net Income Fall: Adjusted net income fell to $11.3 million, or $0.25 per share, compared to $29.1 million and $0.63 per share last year, reflecting pressures on cost control and market competition.
- Modest Sales Growth: Despite the earnings decline, Quanex's net sales increased by 2.2% to $462.4 million, primarily driven by favorable pricing actions and tariff-related recoveries, demonstrating resilience in sales performance.
- Foreign Exchange Benefits: The sales growth was also supported by foreign exchange benefits, indicating the company's pricing power and adaptability in global markets, even as overall profitability faces challenges.
See More
Quanex Building Products Q2 Earnings Beat Expectations
- Earnings Performance: Quanex Building Products reported a Q2 non-GAAP EPS of $0.25, beating expectations by $0.05, indicating resilience and improvement in profitability amidst market challenges.
- Revenue Growth: The company achieved revenue of $462.4 million in Q2, reflecting a 2.2% year-over-year increase and surpassing market expectations by $3.13 million, which enhances market confidence in its product demand stability.
- Financial Health: As of April 30, 2026, Quanex reported total debt of $715 million, with a net debt to adjusted EBITDA leverage ratio of 3.1x, highlighting challenges in debt management that could impact future financing capabilities.
- Liquidity Position: The company's liquidity stood at $328.6 million as of April 30, 2026, comprising $63.7 million in cash and available under its Senior Secured Revolving Credit Facility, indicating a degree of financial flexibility in the short term.
See More
Quanex Reports 2.2% Year-over-Year Net Sales Growth in Q2
- Sales Growth: Quanex reported net sales of $462.4 million for Q2 2026, reflecting a 2.2% increase from $452.5 million in Q2 2025, primarily driven by favorable pricing strategies and foreign exchange impacts, demonstrating resilience in the current economic climate.
- Margin Compression: Despite the sales increase, gross margin declined from 29% to 25.5%, primarily due to rising raw material and transportation costs, highlighting the challenges the company faces in managing inflationary pressures.
- Adjusted Net Income Decline: The company reported adjusted net income of $11.3 million for Q2, significantly down from $29.1 million in the same period last year, indicating that profitability is being pressured by weak consumer confidence and ongoing macroeconomic uncertainties.
- Liquidity Position: As of April 30, 2026, Quanex had liquidity of $328.6 million, and despite seasonal borrowing pressures, effective working capital management allowed the company to avoid being a net borrower, showcasing its cash flow management effectiveness.
See More
Q1 Earnings Review of Home Construction Materials Sector
- Quanex Earnings Highlight: Quanex (NYSE:NX) reported revenues of $462.4 million, a 2.2% year-over-year increase, exceeding analyst expectations by 0.6%, yet faces inflationary pressures and geopolitical conflicts, with expectations to recover some margins in the second half of the year.
- Simpson's Strong Performance: Simpson (NYSE:SSD) achieved revenues of $588 million, up 9.1% year-over-year, outperforming analyst expectations by 6.4%, although the stock has remained stable, indicating that the market had already priced in these results.
- Griffon's Weak Report: Griffon (NYSE:GFF) reported revenues of $421.9 million, down 1.1% year-over-year, despite exceeding analyst expectations by 1.8%, but missed full-year revenue and EBITDA guidance, resulting in a 1.9% decline in stock price.
- Hayward's Strong Growth: Hayward (NYSE:HAYW) reported revenues of $255.2 million, an 11.5% year-over-year increase, surpassing analyst expectations by 6.5%, yet the stock fell 10.7%, reflecting market caution regarding future growth prospects.
See More
Quanex Reports Q2 2026 Earnings with Mixed Results
- Sales Growth: Quanex Building Products Corp reported net sales of $462.4 million in Q2 2026, reflecting a 2.2% increase from $452.5 million in Q2 2025, driven by favorable pricing, tariff pass-throughs, and foreign exchange translation, although overall profitability remains under pressure.
- Net Income Decline: The company reported a net income of $3.4 million for Q2 2026, translating to $0.07 per diluted share, a significant drop from $20.5 million and $0.44 per diluted share in the same period of 2025, highlighting the impact of sharp increases in raw materials and logistics costs.
- Adjusted EBITDA Drop: Adjusted EBITDA fell to $44.2 million from $63.1 million year-over-year, primarily due to reduced operating leverage and inflationary pressures, indicating challenges in cost management for the company.
- Strong Liquidity: As of April 30, 2026, Quanex maintained a strong liquidity position of $328.6 million, with plans to reduce the net leverage ratio by year-end, despite facing challenges from inflation fatigue and geopolitical uncertainties affecting market confidence.
See More
Quanex Building Products Q2 2026 Earnings Call Insights
- Market Demand Stabilization: Housing demand in North America and Europe shows early signs of stabilization, but management expects no sharp rebound in the near term, indicating the need for the company to remain cautious in the face of potential sales pressures.
- Gross Margin Decline: Gross margins fell 350 basis points year-over-year in Q2, primarily due to sharp increases in raw materials and logistics costs, with Hardware Solutions being the hardest hit, reflecting challenges in cost control for the company.
- Sales and Income: The company reported net sales of $462.4 million in Q2, with a net income of $3.4 million or $0.07 per diluted share, and an adjusted net income of $11.3 million or $0.25 per diluted share, demonstrating efforts in revenue growth while still facing cost pressures.
- Cautious Outlook: The company is not reaffirming its guidance for fiscal 2026, expecting Q3 revenue to be flat to up 1% and adjusted EBITDA margin to be flat to up 25 basis points, reflecting management's cautious stance amid market uncertainties.
See More
Quanex Reports Decline in Q2 Earnings Despite Sales Growth
- Earnings Decline: Quanex Building Products Corp. reported a net income drop to $3.4 million, or $0.07 per share, down from $20.5 million and $0.44 per share a year ago, indicating a significant weakening in profitability.
- Adjusted Net Income Fall: Adjusted net income fell to $11.3 million, or $0.25 per share, compared to $29.1 million and $0.63 per share last year, reflecting pressures on cost control and market competition.
- Modest Sales Growth: Despite the earnings decline, Quanex's net sales increased by 2.2% to $462.4 million, primarily driven by favorable pricing actions and tariff-related recoveries, demonstrating resilience in sales performance.
- Foreign Exchange Benefits: The sales growth was also supported by foreign exchange benefits, indicating the company's pricing power and adaptability in global markets, even as overall profitability faces challenges.
See More
Quanex Building Products Q2 Earnings Beat Expectations
- Earnings Performance: Quanex Building Products reported a Q2 non-GAAP EPS of $0.25, beating expectations by $0.05, indicating resilience and improvement in profitability amidst market challenges.
- Revenue Growth: The company achieved revenue of $462.4 million in Q2, reflecting a 2.2% year-over-year increase and surpassing market expectations by $3.13 million, which enhances market confidence in its product demand stability.
- Financial Health: As of April 30, 2026, Quanex reported total debt of $715 million, with a net debt to adjusted EBITDA leverage ratio of 3.1x, highlighting challenges in debt management that could impact future financing capabilities.
- Liquidity Position: The company's liquidity stood at $328.6 million as of April 30, 2026, comprising $63.7 million in cash and available under its Senior Secured Revolving Credit Facility, indicating a degree of financial flexibility in the short term.
See More
Quanex Reports 2.2% Year-over-Year Net Sales Growth in Q2
- Sales Growth: Quanex reported net sales of $462.4 million for Q2 2026, reflecting a 2.2% increase from $452.5 million in Q2 2025, primarily driven by favorable pricing strategies and foreign exchange impacts, demonstrating resilience in the current economic climate.
- Margin Compression: Despite the sales increase, gross margin declined from 29% to 25.5%, primarily due to rising raw material and transportation costs, highlighting the challenges the company faces in managing inflationary pressures.
- Adjusted Net Income Decline: The company reported adjusted net income of $11.3 million for Q2, significantly down from $29.1 million in the same period last year, indicating that profitability is being pressured by weak consumer confidence and ongoing macroeconomic uncertainties.
- Liquidity Position: As of April 30, 2026, Quanex had liquidity of $328.6 million, and despite seasonal borrowing pressures, effective working capital management allowed the company to avoid being a net borrower, showcasing its cash flow management effectiveness.
See More
