As others have noted, "pallet wood" is a lovingly derrisive term some use to describe the "walnut finished American hardwood" that standard non-laminated wood stocked Handi Rifles are equipped with.
On mine, that wood is birch. Birch isn't known for exquisite grain or figure. I really like the way my Handi-Rifle fits me, so for that reason alone, I think the stocking is beautiful in a purposeful kind of way. I must have got the "AAA Fancy" birch, though, becasue mine does have some pretty grain to the butt and a couple of shooters at the local range have commented on the "nice wood" on my rifle, which I find humorous because it is probably about the cheapest stuff you can make a serviceable gunstock out of.
If mine were beech, I definitely wouldn't complain -particularly if the outcome was as nice as it is on my pair of Beeman R-9 air rifles, which both came with Beeman's "select wood" option and have very pleasing figure and grain patterns that make me not miss walnut on them one bit.
The stocks on some Handis might be pallet wood instead of walnut, but that doesn't automatically mean that they're all unintersting to look at or downright ugly. Some of them are actually quite nice, IMHO.
Your taste, as well as the wood on your Handi, may vary......
-JP