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Trex Company, Inc. (TREX) Stock Analysis

Falling Knife setup

HoldModerate Confidence

Industrials · Building Products & Equipment

Hold if already holding. Not a fresh buy at $37.81, but acceptable to hold if already in. Reasons: Concentration risk — Customer: three customers (73.0%); Sector modifier (Industrials): -0.7.

Trex Company is the largest manufacturer of composite decking and railing products, sold under the Trex brand and made entirely in the US (Virginia, Nevada, Arkansas) from recycled polyethylene film and reclaimed wood fiber. Products are stocked in 6,700+ retail locations and... Read more

$37.81+13.6% A.UpsideScore 5.2/10#12 of 18 Building Products & Equipment
QualityF-score8 / 9FCF yield2.44%
Stop $35.51Target $43.39(analyst − 10%)A.R:R 1.3:1
Analyst target$48.21+27.5%19 analysts
$43.39our TP
$37.81price
$48.21mean
$59

Hold if already holding. Not a fresh buy at $37.81, but acceptable to hold if already in. Reasons: Concentration risk — Customer: three customers (73.0%); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 40, MACD bearish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.2/10, moderate confidence.

Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 76d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — Trex Company, Inc.

Generated 2026-05-20T20:21:22Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Positive news sentiment (+1.00)
Risks
Concentration risk — Customer: three customers (73.0%)
Sector modifier (Industrials): -0.7
Weak growth

Key Metrics

P/E (TTM)21.2
P/E (Fwd)20.6
Mkt Cap$4.0B
EV/EBITDA13.5
Profit Mgn16.3%
ROE20.1%
Rev Growth1.0%
Beta1.51
DividendNone
Rating analysts28

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.80neutral
IV55%elevated
Max Pain$30-20.7% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHCustomerthree customers73%
    10-K Item 1: 'For the years ended December 31, 2025, 2024, and 2023, three customers represented approximately 73%, 81%, and 72%, respectively, of the Company's total net sales.'

Material Events(8-K, last 90d)

  • 2026-02-24Item 5.02MEDIUM
    CEO Bryan H. Fairbanks to resign effective April 28, 2026; COO Adam D. Zambanini named successor President and CEO and added to Board same date. Fairbanks' departure not due to any disagreement with the Company.
    SEC filing →
  • 2026-05-04Item 5.02LOW
    Zachary C. Lauer appointed SVP, Chief Operations Officer effective April 28, 2026, overseeing manufacturing, supply chain, engineering, and R&D. Has served at Trex since 2016 in supply chain/manufacturing roles.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
2.7
Earnings Growth
2.7

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Ma Position
1.0
Rsi
3.5
Volume
5.0
Obv
10.0
Volume accumulation (rising OBV)Below 200-MA, MA slope -6.6%/30d — confirmed downtrend
GatesMomentum 3.9<4.5A.R:R 1.3 < 1.5@spotDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 76d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
40 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $36.48Resistance $44.45

Price Targets

$36
$43
A.Upside+14.8%
A.R:R1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! NEWS_MOD=+2: SELL_IF_HOLDING → HOLD_IF_HOLDING
! Momentum score 3.9/10 — below 4.5 minimum
! Reward/Risk 1.3:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-04 (76d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is TREX stock a buy right now?

Hold if already holding. Not a fresh buy at $37.81, but acceptable to hold if already in. Reasons: Concentration risk — Customer: three customers (73.0%); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 40, MACD bearish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $43.39 (+14.8%), stop $35.51 (−6.5%), A.R:R 1.3:1. Score 5.2/10, moderate confidence.

What is the TREX stock price target?

Take-profit target: $43.39 (+13.6% upside). Target $43.39 (+14.8%), stop $35.51 (−6.5%), A.R:R 1.3:1. Stop-loss: $35.51.

What are the risks of investing in TREX?

Concentration risk — Customer: three customers (73.0%); Sector modifier (Industrials): -0.7; Weak growth.

Is TREX overvalued or undervalued?

Trex Company, Inc. trades at a P/E of 21.2 (forward 20.6). TrendMatrix value score: 5.3/10. Verdict: Hold.

What do analysts say about TREX?

28 analysts cover TREX with a consensus score of 3.6/5. Average price target: $48.

What does Trex Company, Inc. do?Trex Company is the largest manufacturer of composite decking and railing products, sold under the Trex brand and made...

Trex Company is the largest manufacturer of composite decking and railing products, sold under the Trex brand and made entirely in the US (Virginia, Nevada, Arkansas) from recycled polyethylene film and reclaimed wood fiber. Products are stocked in 6,700+ retail locations and sold primarily through wholesale distributors and home centers. Three customers (Home Depot, Lowe's, and a distributor) represented approximately 73% of 2025 net sales.

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