Is Trex Company (TREX) Trading at an Attractive Valuation?

1 day ago 5

Soumya Eswaran

Thu, December 11, 2025 astatine 7:10 AM CST 3 min read

Mairs & Power, an concern advisor, released the third-quarter 2025 capitalist missive for the “Mairs & Power Small Cap Fund.” A transcript of the missive tin beryllium downloaded here. The market’s attraction persists successful 2025, with a fewer ascendant mega-cap stocks tied to artificial quality (AI) driving astir of the favorable outcomes. The money returned 2.06% successful the archetypal 9 months of 2025. The money underperformed the benchmark Russell 2000 Total Returns (TR) Index, which was up 10.39%, the S&P Small Cap 600 TR, which roseate 4.24% and the Morningstar U.S. Fund Small Blend, which returned 6.15%. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Mairs & Power Small Cap Fund highlighted stocks specified arsenic Trex Company, Inc. (NYSE:TREX). Trex Company, Inc. (NYSE:TREX) manufactures and distributes composite decking, railing, and outdoor surviving products and accessories. The one-month instrumentality for Trex Company, Inc. (NYSE:TREX) was 9.53%, and its shares mislaid 54.84% implicit the past 52 weeks. On December 10, 2025, Trex Company, Inc. (NYSE:TREX) banal closed astatine $35.39 per share, with a marketplace capitalization of $3.796 billion.

Mairs & Power Small Cap Fund stated the pursuing regarding Trex Company, Inc. (NYSE:TREX) successful its 3rd 4th 2025 capitalist letter:

"During the 3rd 4th of 2025, the Fund initiated a presumption successful Patrick Industries and Trex Company, Inc. (NYSE:TREX). Trex is simply a starring shaper of wood alternate composite decking, railing, and outdoor surviving goods that combines recycled integrative and reclaimed wood to present durable, low-maintenance outdoor gathering products. Trex has a renowned brand, and has benefited from a secular displacement to composite materials distant from wood. Trex banal had been weak, aft concerns regarding slowing lodging manufacture owed to elevated rates, and was astatine a valuation we viewed arsenic attractive."

Among Mid- And Large-Cap Stocks Insiders Are Buying After Trump’s Tariff Rollout

Trex Company, Inc. (NYSE:TREX) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge money portfolios held Trex Company, Inc. (NYSE:TREX) astatine the extremity of the 3rd quarter, the aforesaid arsenic successful the erstwhile quarter. While we admit the imaginable of Trex Company, Inc. (NYSE:TREX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.