Trex stock: buy or sell?

TREX stock price: $127.71 2.32% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

4

After reaching all time highs on May 22nd, Trex escalated 2.32% on May/22 to $127.71. Counting May 22nd, it's been 3 climbing sessions in a row, gaining $8.53 or 6.95%. On Monday TREX rocketed a dazzling 6.36%.

Trex Company, Inc. manufactures and distributes wood\u002Fplastic composite products, and related accessories primarily for the residential and commercial decking, and railing applications in the United States.

Should I buy Trex stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups match with Trex stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Trex stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't detect any rating for TREX stock for the last month.

Trex stock analysis

Daily outlook

Trex escalated 2.32% on May 22nd and touched a new all time high at $127.87.

After several days of continuous hikes in past weeks, Trex escalated 2.32% to $127.71. Since price and SMA200d lines crossed up on Apr 27th, TREX climbed $41.92 (48.86%). TREX shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on May 14th, TREX climbed unceasignly breaking out to new all time highs.

TREX stock chart (daily)

Weekly outlook

Trex shares topped new all time highs back again this week, setting highs to $127.87. Shares ended at $127.71 and boosted 11.10% during the week. Late March TREX plummed a frightening -22.45% in just one week.

Trex is in a clear downtrend, marking successive declining peaks and bottoms. Now is trading in between the - range. If the support holds the price, this might mark a double bottom pattern and create a flat-base to reverse this downtrend. Since price and SMA40w lines crossed up late April, TREX climbed $41.92 (48.86%).

TREX stock chart (weekly)

Trex stock price history

Trex stock went public on April 8th, 1999 with a price of $2.501. Since then, TREX stock grew a 5,008.40%, with an average of 238.50% per year. If you had invested right after TREX's IPO a $1,000 in Trex stock in 1999, it would worth $50,084.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Trex stock historical price chart

TREX stock reached all-time highs on May 22nd with a price of $127.87.

Trex stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' TREX stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not found any price prediction for Trex stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Trex reported shining results for 2018-Q4 . Trex jumped Earnings per Share (EPS) by 16.20%, beating analysts consensus of $0.37. Trex posted $0.43.
TREX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.97n/a
2017-Q32017-10-300.550.6823.6%
2017-Q42018-02-210.540.563.7%
2018-Q12018-05-070.580.638.6%
2018-Q22018-07-300.640.7314.1%
2018-Q32018-10-290.530.577.5%
2018-Q42019-02-140.370.4316.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Trex annual turnover climbed a super good 21.07% to $684.25 million USD from $565.15 marked in 2017. In contrast, its income margin (compared to revenues) inched to 19.67%, that is $134.57 million.

TREX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$343 M-$35 M10.1%-
2014$392 M14.35%$42 M10.6%20.00%
2015$441 M12.55%$48 M10.9%15.84%
2016$480 M8.80%$68 M14.1%41.06%
2017$565 M17.83%$95 M16.8%40.21%
2018$684 M21.07%$135 M19.7%41.46%

Quarterly financial results

Trex reported $139.97 M in sales for 2018-Q4, a -15.87% less compared to previous quarter. Reported quarter income marked $25.17 M with a profit margin of 17.98%. Profit margin stayed constant a 0.27% compared to previous quarter when profit margin was 17.71%. When comparing sales to same quarter last year, Trex sales marked an outstanding gain and boosted a 14.53%. Looking back to recent quarterly results, Trex posted 2 negative quarters in a row.
TREX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$158 M-$29 M18.2%-
2017-Q3$140 M-11.24%$20 M14.3%-30.17%
2017-Q4$122 M-12.83%$18 M15.0%-8.95%
2018-Q1$171 M40.09%$37 M21.7%102.80%
2018-Q2$207 M20.73%$43 M20.7%15.39%
2018-Q3$166 M-19.50%$29 M17.7%-31.17%
2018-Q4$140 M-15.87%$25 M18.0%-14.59%
2019-Q1$180 M28.29%$32 M17.6%25.36%

Trex ownership

When you are planning to buy a stock, it's worth to have a look its ownership structure.

Trex shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.61% of all shares.

Bearish positions for TREX stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

TREX
Market cap$7.4 B
Total shares57.9 M
Float shares57.6 M
  - Institutional holdings (%)107.9%
  - Insider holdings (%)0.6%
Shares in short selling0.0%

Trex summary

Friday, May 22nd, 2020
Open$125.60
Close$127.71
Day range$124.63 - $127.87
Previous close$124.81
Session gain2.32%
Average true range$6.17
50d mov avg$90.94
100d mov avg$94.66
200d mov avg$90.99
Daily patternlb03c
Weekly pattern lt02a

Trex performance

To measure stock performance is always good to benchmark with competitors or related stocks. We chose as the bechmarking frame for Trex stock.
Stock3m6m12m
TREXTrex20.15%50.32%94.98%

Trex competitors

Unfortunately, we could not find any public company that could be defined as Trex competitor. This doesn't mean Trex does not have any competitor in the market, it's just we could not detected it.