Is Trex Company (TREX) Trading at Attractive Valuation?
Baron Funds, an investment management company, released its “Baron Discovery Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 3.58% (Institutional Shares) in the second quarter trailing the Russell 2000 Growth Index’s 7.05% return. Year-to-date, the fund returned 15.19% (Institutional Shares) compared to a 13.55% return for the benchmark. The macroeconomic landscape remains complicated, and the market’s general tendency is toward fear rather than greed. Nonetheless, the firm remains hopeful that the market has bottomed and that an economic recovery is starting. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Trex Company, Inc. (NYSE:TREX) in the second quarter 2023 investor letter. Headquartered in Winchester, Virginia, Trex Company, Inc. (NYSE:TREX) is a decking, railing, and outdoor living products and accessories manufacturer. On August 18, 2023, Trex Company, Inc. (NYSE:TREX) stock closed at $67.40 per share. One-month return of Trex Company, Inc. (NYSE:TREX) was 1.28%, and its shares gained 34.64% of their value over the last 52 weeks. Trex Company, Inc. (NYSE:TREX) has a market capitalization of $7.333 billion.
Baron Discovery Fund made the following comment about Trex Company, Inc. (NYSE:TREX) in its second quarter 2023 investor letter:
"We increased our position in long time holding Trex Company, Inc. (NYSE:TREX), a leading manufacturer of composite decking, due to the large pullback in the stock, a stabilization in the fundamental backdrop, and what we perceive to be an attractive valuation."
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Trex Company, Inc. (NYSE:TREX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX) at the end of second quarter which was 30 in the previous quarter.
We discussed Trex Company, Inc. (NYSE:TREX) in another article and shared Conestoga Smid Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
