Stocks Are Down, But Trex Looks Like a Buy

TL;DR

Trex, a composite outdoor decking company, has outperformed all other stocks in a five-stock sampler, with an 830% increase in six years.

Transcript

David Gardner: Here we come down the homestretch. Our final stock for this five-stock sampler is the single best performer over the long-term among all of these companies. It's probably the most obscure, as well. The ticker symbol is TREX, and sure enough, that's also the name of the company. This is the outdoor decking company, Trex. Trex, just lo... Read More

Key Insights

• 👋 Trex, an outdoor decking company, has been the best long-term performer among a five-stock sampler, with an 830% increase since 2012.
• 😉 The company's success showcases the importance of having a great product or product experience at the core of a winning stock.
• 💦 Trex's composite decking, superior to wood and resistant to water damage, has made it a popular choice in professional settings.
• 🥺 Despite being in a traditional industry, Trex has proven that innovation and relative obscurity can lead to outstanding performance.
• 👲 The company's small market cap and leadership position in the outdoor decking market make it an attractive investment for the future.
• ✋ Trex's success challenges the notion that high-performing stocks are limited to technology-driven companies.
• ❓ Obscure companies like Trex can offer great investment opportunities and have been highlighted by investment experts like Peter Lynch.

Questions & Answers

Q: How has Trex stock performed in recent times?

Trex's stock dropped 31% from $89 to $61 since September 10th, but it is still up over 830% since it was recommended in 2012 at $6.77.

Q: What makes Trex unique in its industry?

Trex stands out as the innovator in composite outdoor decking, offering a product that looks like wood but functions better and is resistant to water damage.

Q: How has Trex performed compared to technology-driven companies?

Despite being in a traditional industry, Trex has outperformed technology-driven companies mentioned in the video, highlighting that great companies can be found in various sectors.

Q: Why did the speaker recommend Trex again five years later?

The speaker recommended Trex again in 2017 due to its small market cap, leadership position in the outdoor decking field, and the prospect of increased demand in the future.

Summary & Key Takeaways

• Trex, the outdoor decking company, is the best long-term performer among the five stocks in the sampler, despite being relatively unknown.

• The company's stock has dropped recently, but since it was recommended in 2012 at $6.77, it has increased by over 830%.

• Trex's success shows that great companies can be found in unexpected industries, and their products or experiences are often at the core of their success.