Kanen Makes a Big Bet on Housing. Should You Follow?

This is simply a caller position, representing 2.68% of Kanen’s reportable U.S. equity assets nether absorption aft the trade.

Top 5 holdings post-filing:

• NYSE:COMP: $67.59 cardinal (20.9% of AUM)

• NASDAQ:ALLT: $45.04 cardinal (13.9% of AUM)

• NYSE:BNED: $30.81 cardinal (9.5% of AUM)

• NASDAQ:REAL: $29.34 cardinal (9.1% of AUM)

• NASDAQ:INSE: $24.84 cardinal (7.7% of AUM)

As of Feb. 18, 2026, shares were priced astatine $41.89, down 37.3% implicit the past year, trailing the S&P 500 by 49.6 percent points.

• Trex offers composite decking, railing, fencing, and outdoor surviving products, with brands including Trex Transcend, Trex Select, and Trex Enhance.

• The institution generates gross done manufacturing and distributing outdoor gathering materials, supplemented by licensing agreements for branded accessories and products.

• It serves residential and commercialized markets, distributing done wholesale distributors, retail lumber dealers, and large location betterment retailers specified arsenic Home Depot and Lowe's.

Trex is simply a starring shaper of composite decking and outdoor surviving products, operating astatine standard with implicit $1.18 cardinal successful trailing 12 months revenue. The institution leverages a vertically integrated exemplary and extended organisation web to support a beardown beingness successful some residential and commercialized operation markets. Its absorption connected branded, low-maintenance alternatives to wood provides a competitory borderline successful the increasing outdoor surviving segment.

Investors person been waiting for a turnaround successful the lodging sector. Kanen Wealth Management whitethorn deliberation that this twelvemonth volition people the beginning. The existent situation of debased inventory, precocious prices, and debased income momentum is bound to change. Though it’s a dilatory process.

The absorption for involvement rates is lower, and owe rates should yet follow. Increased proviso volition besides person to beryllium a factor. That volition payment Trex.

Trex continues to innovate, with 25% of its income implicit the past twelvemonth coming from caller products. The institution has besides been expanding spending connected probe and improvement (R&D) and promoting its starring marque to enactment further growth.