Jim Cramer - Mad Money Trex Company Inc. TREX-N BUY ON WEAKNESS Sep 20, 2023

Will go up because the shorts will have to be covering at some point. A low-cost producer in a fast-growing market.

They make faux-wood decking and railing. He's long liked it. It rallied until 3 weeks ago when the current rotation kicked in. Wall Street is fickle. TREX has had so much demand they are building another factory. And last week they reported 40% revenue growth. But the stock has fallen 18% from highs after management released weaker guidance.

She's owned this for a while. It's down 40% from highs, so attractive now. She expects home repairs to continue. She loves the housing-adjacent trade.

There is a severe housing shortage. A nice way to play housing this is in the repair side. Rising rates will prevent homeowners from moving into new homes and they will stay in place. So, this will drive home renovations. We need to add more supply to homes in the next 12-18 months, but until then there will be pressure on this space.

Housing-adjacent stocks are a tough space. TREX does mixed-composite decking, which is more expensive decking than lumber. They warned of lower capex for the second-half of 2022 based in weakening inventory demand. In the long-term, this is a growth driver within housing-adjacent stocks. She added to this earlier this year and will watch for normalization of inventories in the professionals channel. Hold on.