Janus International (NYSE: JBI): Small-Cap Candidate for Portfolio Growth
Recently, small-cap Janus International has shown impressive momentum, with its stock price increasing nearly 13% in 2024. Despite these gains, the stock is trading at around $15, which I believe underscores a significant undervaluation given the company’s prospects and market position.
The self-storage sector, where Janus operates, is experiencing robust demand, evidenced by occupancy rates maintaining around 90%, well above the mid-cycle average of approximately 85%. This high demand is a strong indicator of the sector’s health and points to continued need for capacity expansion, from which Janus is well-placed to benefit.
Additionally, the challenges that previously plagued the industry, such as pandemic-related construction delays, are diminishing. With these obstacles in the rearview, combined with the potential for lowering interest rates, there is renewed momentum that could accelerate growth and demand within the sector.
Janus’s position as the only national player offering a full-service solution provides it with significant pricing power, an advantage that should not be underestimated in evaluating its financial health and growth trajectory.For investors looking for a stock that offers both growth potential and relative security within a stable industry, Janus International represents a compelling pick. Its under-the-radar status, combined with solid fundamentals and a strong market position, makes it a prime candidate for those looking to diversify into the small-cap space with a stock poised for significant appreciation.
