Since its inception in 1998, Trex (NYSE: TREX) has been a pioneer in the manufacturing of composite decking, railing, and related products. Despite being linked to the cyclical U.S. housing market, the company has seen remarkable growth, delivering a staggering 3,200% return since 2009. This success has positioned Trex as the dominant player in an $8 billion market.

However, after reaching all-time highs in 2021, Trex's share price has experienced a significant 52% decline, presenting a potential buying opportunity for investors. The company's fortunes have been influenced by the pandemic-driven boom in home remodeling and restoration, which has since waned.

Nevertheless, Trex is poised to benefit from several long-term advantages. Its market-leading position, with a 13% share and a digital presence that captures over 60% of web traffic for deck options, suggests a strong brand and consumer preference. The composite decking market, where Trex operates, is still largely untapped, with only 24% of the market, indicating substantial room for growth as consumers shift from traditional wood to low-maintenance composite materials.

Trex's potential for a once-in-a-decade opportunity is further bolstered by four short-term catalysts:

1. Lower Interest Rates: The recent 50 basis points cut by the Federal Reserve could stimulate home improvement projects, benefiting Trex as borrowing costs decrease.

2. Improving Consumer Sentiment: As the U.S. Index of Consumer Sentiment rises from its 2023 low, it may signal a resurgence in consumer spending, positively impacting Trex's sales.

3. International Expansion and Product Innovation: Trex is still in the early stages of international market penetration and has recently entered new product categories, such as railings and deck fasteners, offering additional avenues for growth.

4. Attractive Valuation: With a P/E ratio of 28, comparable to the S&P 500 average, Trex's stock is trading at a reasonable price for a company with a proven growth track record.

While these factors make a compelling case for Trex as an investment, it's important to consider the broader market context. The Motley Fool Stock Advisor team has identified other stocks with potential for significant returns, and Trex may not always be among their top picks. Investors should conduct thorough research and consider diversifying their portfolio to maximize potential gains and mitigate risks.

In conclusion, Trex's innovative products, strong market position, and strategic growth initiatives, combined with current market conditions, suggest that it could be a compelling investment for those looking to capitalize on a potential market rebound and long-term industry trends.