#2 - Trex (NYSE:TREX)
The thesis for buying Trex Company Inc. (NYSE: TREX) as part of a Trump trade is simple. If lumber prices are affected by tariffs, you’ll want to look for companies that give consumers a different option. Trex is the world leader in wood-alternative decking.
The U.S. decking and railing category is valued at $8 billion. Trex has 13% of that market, and it’s likely to get more. Aside from the cost of lumber, consumers are showing a preference for wood alternatives for maintenance and resale reasons, as well as for its impact on the environment.
Trex is a part of the larger housing trade, and the company believes that remodeling activity will get a lift from interest rate cuts. Even if those cuts don’t come at the rate that some homeowners expect, the trend is favorable.
TREX stock is up nearly 6% despite an earnings report that showed a year-over-year decline in revenue and earnings. It’s likely that analysts are rethinking the sell-off in the stock since April 2024. That bullish sentiment is reflected in a $79.94 consensus price target that gives investors 16% upside.
About Trex
Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.
Read More - Current Price
- $68.44
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $79.94 (16.8% Upside)
