A Closer Look at 15 Analyst Recommendations For Trex Co

In the last three months, 15 analysts have published ratings on Trex Co TREX, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $78.6, along with a high estimate of $100.00 and a low estimate of $67.00. Experiencing a 17.03% decline, the current average is now lower than the previous average price target of $94.73.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Trex Co's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Trex Co. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Trex Co compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Trex Co's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Trex Co analyst ratings.

About Trex Co

Trex Co Inc is a manufacturer of wooden alternative decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in one reportable segment i.e. Trex Residential.

Unraveling the Financial Story of Trex Co

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Trex Co showcased positive performance, achieving a revenue growth rate of 5.59% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Trex Co's net margin is impressive, surpassing industry averages. With a net margin of 23.11%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Trex Co's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.24% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Trex Co's ROA stands out, surpassing industry averages. With an impressive ROA of 6.79%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Trex Co's debt-to-equity ratio is below the industry average at 0.11, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.