Entering text into the input field will update the search result below

Trex - Time To Take A Bite

Apr. 01, 2022 12:55 PM ETTrex Company, Inc. (TREX)HD, LOW16 Comments


  • Trex is a secular growth story in the outdoor living space.
  • The company's composite products gain long-term market share over wood.
  • Partially seen as a pandemic play in 2020 and 2021, valuations have been reset enough given the secular growth story.
  • Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »

Cozy patio with entrance to the house

itchySan/E+ via Getty Images

At a time when the market is recovering from the largest concerns related to the war in Ukraine, some names are appearing on the 52-week low list, one of which includes Trex (NYSE:TREX). This is interesting

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!

This article was written by

The Value Investor profile picture

The Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events.

As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TREX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (16)

RedRock Asset Management GmbH profile picture
in a nutshell you do not buy the idea that a recession will come in late 2022 or early/mid 2023, I guess. Because otherwise, you could just wait and take it with a better price. Yes, the secular growth is correct but what about the short term macroeconomic situation? If people sense a recession is about to start, this not the right place to put your money in, now. better wait.
The Value Investor profile picture
@Saviolino Agree. You have to understand that I hedge a considerable portion of my long book with short SPY, just for that matter

If we get a recession, everything is going lower. So really the question we should be asking is in a S&P down 20% market, how much is TREX down?
The Value Investor profile picture
@Fred. L. TREX down probably more in such an instance, but the question is of course what happens in the other scenario(s) as well. Best of luck.
Bold Investments profile picture
Completely agree, solid moat, great business
Michael Dolen profile picture
$AZEK is better bet moving forward.
@Michael Dolen I don't follow either company as an investor but as someone who used to sell both products, for my money I would buy AZEK pvc decking before TREX if they had the look I wanted for the particular project I had going. Does Azek still own Timbertech too? I would choose Trex over TT.

My professional installers all preferred Azek to every other ultra-low maintenance product on the market. By a wide margin.
Michael Dolen profile picture
@Zach Nye My experience sounds similar to yours. Previously I had thought Trex was gold standard but when I re-did deck at vacation home last year, all of my research (and countless samples ordered) led me to the same conclusion; Azek's TimberTech is far superior to Trex.

What else I like about the company is they sell a number of similar building components for eves and similar, each having dominant market positions.
@Michael Dolen

Thanks for mentioning. Will try to do some comparative research.
Nibble with caution to get a good avg.

Good article! Home improvement isn't going away anytime soon. People value their living space indoor and outdoors now. Look at all the homes that are flipped and fixed up. Just a few grand of material can get you a lot more for the property.
PhilTCU profile picture
@blackstar408 I was guessing flippers would probably opt for the cheaper option as wood looks very nice at first and it might be difficult to get a good return on you mr investment with trek. Does it looks nicer than wood?
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About TREX

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on TREX

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.