Why Trex Stock Squeezed the Housing Pessimists Tuesday
If you're wondering what Trex (NYSE: TREX) could have said in its second-quarter report to justify a 16% share price pop on Tuesday, you'll need to take a few steps back and look at the bigger picture. A certain segment of the investing world had been using the company's stock as a proxy bet on the housing market, and based on Trex's results -- and just as important, its outlook -- those folks bet wrong.
In this segment from the MarketFoolery podcast, host Chris Hill and MFAM Funds CIO Bryan Hinmon discuss what's happening at Trex -- its supply chain problems, which it appears to have put behind it, its aggressive guidance, and its healthy finances. They also talk about its investment thesis and why the stock may not be right for those who lack a strong stomach.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. A full transcript follows the video.
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