10 Stocks Left Behind Amid Wall Street Cheer

Page 9 of 9

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

Trex Company dropped to a new 52-week low on Wednesday after three consecutive days of declines, as investors sold off positions after the company withdrew its growth guidance for full-year 2025, now expecting figures to end flat year-on-year.

At intra-day trading, Trex Company, Inc. (NYSE:TREX) fell to its lowest price of $32.14 before paring losses to end the day just down by 31.06 percent at $32.43 apiece.

“Our year-to-date sales growth of 3 percent was led by railing sales, which are tracking to double-digit growth for the full year. We now expect, however, that several factors will cause our fourth quarter sales to be below our original expectations,” Trex Company, Inc. (NYSE:TREX) said.

“First, we are seeing continuing weakness in the Repair and Remodel sector in what also is the seasonally slowest quarter of the year. In addition, we expect that our distribution partners will manage their end-of-year inventories to lower levels through the end of the year. Thus, we currently expect fourth quarter sales to range from $140 million to $150 million, bringing full-year 2025 sales guidance to $1.15 billion to $1.16 billion, approximately flat with our reported sales in 2024,” it noted.

The company also revised its full-year adjusted EBITDA margin guidance to range from 28.0 percent to 28.5 percent.

Following the announcement, shareholder law firm Hagens Berman said that it initiated an investigation to look into whether Trex Company, Inc. (NYSE:TREX) misled investors about adverse trends impacting its business.

In the third quarter of the year, the listed firm saw net income jump by 28 percent to $51.77 million from $40.55 million in the same period last year. Revenues increased by 21.9 percent to $285 million from $233.7 million year-on-year.

While we acknowledge the potential of TREX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TREX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge fund investor letters by entering your email below.

Page 9 of 9