TREX - Why a Recession Shouldn't Stop You From Buying Trex
Trex Company (NYSE: TREX), best known for its decking and related products, is a hit with both homeowners and environmentalists. The company's core product is made from 95% recycled materials -- primarily polyethylene film that's one of the harder plastics to recycle -- and lasts a lot longer than a wood deck. Moreover, it doesn't require the annual cleaning, or chemical bath of treating and staining that wood decks also need.
Over the past decade, Trex has been a fantastic investment, too. Since the beginning of 2010, sales have increased by 165% and the stock price is up more than 1,700% as the company transitioned from a money loser coming out of the Great Recession to record profits. As things stand today, Trex looks like a company that's firing on all cylinders. After a speed bump in early 2019 as the company faced demand that it couldn't meet, it's back to double-digit growth, with plans to more than double its manufacturing capacity by 2021. Investors are optimistic, too. Trex's stock is very close to its all-time high.
It may seem like a mistake to buy Trex with a recession on the horizon. But long-term investors shouldn't hold off. Image source: Getty Images.