5 Best Stocks Under $50

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

Share Price as of October 21: $44.02

Number of Hedge Fund Holders: 36

Trex Company, Inc. (NYSE:TREX) is a leading manufacturer and distributor of wood-alternative decking and railing products. The company has a strong competitive advantage due to its scale, brand recognition, and product innovation. The company’s products are eco-friendly and require less maintenance than traditional wood products, which is a key selling point for customers. Trex Company, Inc. (NYSE:TREX) is well-positioned to continue growing its market share in the U.S. and internationally. Moreover, the company has a strong balance sheet and generates significant cash flow. The company has free cash flows of $335 million and is one of the best stocks to buy now.

On October 20, Deutsche Bank analyst Joe Ahlersmeyer revised his price target on Trex Company, Inc. (NYSE:TREX) to $80 from $87 and reiterated a Buy rating on the shares.

At the close of Q2 2022, 36 hedge funds were eager on Trex Company, Inc. (NYSE:TREX) and held stakes worth $201 million in the company. Of those, Montanaro Asset Management was the largest investor in the company and held stakes worth $30.7 million.