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NXQuanex Building Products CorporSell5.0·$20.25
SellHigh Confidence
Investment thesis

Quanex Building Products trades attractively cheap with a favorable risk/reward setup and a solid earnings beat streak, but weak quality metrics and elevated bearish options positioning temper the value case.

Thesis pillars

  • Attractive Valuation Despite QualityImproving
  • Quality Floor Breach No MoatStable
  • Earnings Beat Analyst UpsideStable
  • +2 more pillars — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Quanex Building Products Corpor (NX) Stock Analysis

Range Bound setup · Inst Constrain edge

SellValueHigh Confidence

Industrials · Building Products & Equipment

Sell if holding. At $20.25, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3).

Quanex Building Products Corporation, together with its subsidiaries, manufactures and distributes components for original equipment manufacturers (OEM) in the building products industry in the United States, Europe, Canada, Asia, and internationally. It offers energy-efficient... Read more

$20.25+9.2% A.UpsideScore 5.0/10#19 of 25 Building Products & Equipment
QualityF-score6 / 9FCF yield6.97%
IncomeYield1.59%(5y avg 1.44%)Payout32.99%sustainable
Stop $18.83Target $22.10(analyst − 15%)A.R:R 0.7:1
Analyst target$26.00+28.4%4 analysts
$22.10our TP
$20.25price
$26.00mean
$30

Sell if holding. At $20.25, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: RSI 57 mid-range, Bollinger mid-band. Score 5.0/10, high confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-09-23

Recent Developments — Quanex Building Products Corpor

Generated 2026-09-24T00:57:01Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Dec 10, 202678d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Thin upside margin: 9.2%
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3)
Sector modifier (Industrials): -0.7

Key Metrics

P/E (TTM)20.7
P/E (Fwd)10.5
Mkt Cap$947M
EV/EBITDA8.2
Profit Mgn2.4%
ROE6.2%
Rev Growth1.3%
Beta0.95
Dividend1.59%
Rating analysts10

Quality Signals

Piotroski F6/9

Options Flow

P/C0.25bullish
IV70%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerfew large customers
    10-K Item 1A: 'Certain of our businesses or product lines are largely dependent on a relatively few large customers.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
2.8
Low model confidence on this dimension (33%).

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
1.8
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
2.1
Growth Rank
2.4
Value Rank
8.1
GatesMomentum 2.9<4.5A.R:R 0.7 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
57 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $17.43Resistance $23.24

Price Targets

$19
$22
A.Upside+9.2%
A.R:R0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! momentum at 2.9 (below the engine's 4.5 threshold)
! asymmetry at 0.7 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-12-10 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NX stock a buy right now?

Sell if holding. At $20.25, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: RSI 57 mid-range, Bollinger mid-band. Prior stop was $18.83. Score 5.0/10, high confidence.

What is the NX stock price target?

Take-profit target: $22.10 (+9.2% upside). Prior stop was $18.83. Stop-loss: $18.83.

What are the risks of investing in NX?

Thin upside margin: 9.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3); Sector modifier (Industrials): -0.7.

Is NX overvalued or undervalued?

Quanex Building Products Corpor trades at a P/E of 20.7 (forward 10.5). TrendMatrix value score: 7.9/10. Verdict: Sell.

What do analysts say about NX?

10 analysts cover NX with a consensus score of 4.3/5. Average price target: $26.

What does Quanex Building Products Corpor do?Quanex Building Products Corporation, together with its subsidiaries, manufactures and distributes components for...

Quanex Building Products Corporation, together with its subsidiaries, manufactures and distributes components for original equipment manufacturers (OEM) in the building products industry in the United States, Europe, Canada, Asia, and internationally. It offers energy-efficient flexible insulating glass spacers, extruded vinyl profiles, window and door screens, precision-formed metal and wood products, window and door seals, and window and door hardware. The company also solar panel sealants, trim moldings, vinyl decking, water retention barriers, conservatory roof components, and commercial access solutions. It sells its products through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

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