Home Sectors Basic Materials Recent Technicals: Trex Company (NYSE: TREX)

Recent Technicals: Trex Company (NYSE: TREX)

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Trex Company is in the basic materials sector and building materials industry. The company CEO is James E. Cline. Trex Co Inc offers an alternative composite decking from the wood that was being used traditionally. The company’s composite decking offering provides low-maintenance, high-performance, eco-friendly decking products for outdoor spaces.

Previous Intraday Trading Performance:

The TREX stock showed a previous change of 1.59% with an open at 70.30 and a close of 70.81. It reached an intraday high of 70.87 and a low of 69.88.

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Liquidity:

The stock has a market cap of $4.1b with 58.5m shares outstanding, of which the float is 55.0m shares. Trading volume reached 704,714 shares compared to its average volume of 896,095 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Trex Company shares returned 2.46% and in the past 30 trading days it returned 9.11%. Over three months, it changed -3.05%. In one year it has changed 10.13% and within that year its 52-week high was 90.74 and its 52-week low was 50.88. TREX stock is 39.17% above its 52 Week Low.

Our calculations show a 200 day moving average of 68.86 and a 50 day moving average of 67.58. Currently TREX stock is trading 2.83% above its 200 day moving average and may be a good opportunity to buy.

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Earnings:

The last annual fiscal EPS for the company was reported at 2.29 that ended on 31st of December 2018, which according to the previous close, that is a PE of 30.92. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.59. The TTM EPS is 2.36, which comes to a TTM PE of 30.00. Historically, the PE high was 56.20 and the PE low was 20.50. If the stock reached its PE low, that would represent a price of 48.39, which is a decrease of -31.67%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/29/2019): 0.54
4thQtr of 2018 (Reported on 02/14/2019): 0.43
3rdQtr of 2018 (Reported on 10/29/2018): 0.50
2ndQtr of 2018 (Reported on 07/30/2018): 0.73
1stQtr of 2018 (Reported on 05/07/2018): 0.63

Indicators to Watch:

Short-interest was 8,323,294, which was 14.23% of shares outstanding. The short-interest ratio or days-to-cover ratio was 7.42. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 2.12.

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 42.89%, return on assets is 27.41%, profit margin is 18.79%, price-to-sales is 5.89 and price-to-book is 11.23.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 4  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.