5 Best Cement and Construction Materials Stocks To Buy Now

2. Trex Company, Inc. (NYSE:TREX)

Number of Hedge Fund Holders: 36

Trex Company, Inc. (NYSE:TREX) is a Virginia-based company that manufactures and distributes decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. On October 20, Deutsche Bank analyst Joe Ahlersmeyer reiterated a Buy rating on Trex Company, Inc. (NYSE:TREX) but lowered the price target on the shares to $80 from $87. The analyst believes the Q3 earnings season for building products will demonstrate continued robust earnings results and mostly reiterated short-term guidance, but estimates might be revised down for next year.

According to Insider Monkey’s data, 36 hedge funds were bullish on Trex Company, Inc. (NYSE:TREX) at the end of the second quarter of 2022, compared to 38 funds in the earlier quarter. Charles Montanaro’s Montanaro Asset Management is the leading position holder in the company, with 565,000 shares worth $30.7 million. 

Here is what Carillon Eagle Small Cap Growth Fund has to say about Trex Company, Inc. (NYSE:TREX) in its Q1 2022 investor letter:

“Trex (NYSE:TREX) manufactures high-performance composite decking and railing products, as well as custom- engineered railing and staging systems, for the commercial and multi-family market. After surging in the prior quarter, the company’s shares declined as rising interest rates weighed a bit on investor sentiment in stocks tied to the housing industry. Despite this, demand for the firm’s products has remained healthy, and we believe Trex should be well positioned to weather any potential downturn in the overall housing industry as its business skews heavily towards repair and remodeling as opposed to new construction.”