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Bull of the Day: The AZEK Company (AZEK)

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The AZEK Company Inc. (AZEK - Free Report) recently beat on earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow revenue 8.3% this year.

The AZEK Company designs and manufactures low maintenance and environmentally sustainable outdoor living products including TimberTech Decking and Railing, Versatex and AZEK Trim, and StruXure pergolas.

Its products are made from up to 85% recycled material and primarily replace wood on the outside of homes.

Headquartered in Chicago, it operates manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota, and Texas.

Another Earnings Beat by The AZEK Company in the Fiscal First Quarter 2025

On Feb 4, 2025, The AZEK Company reported its fiscal first quarter 2025 results and beat the Zacks Consensus by $0.03. Earnings were $0.17 versus the consensus of $0.14.

It was the 9th earnings surprise in a row.

Net sales rose 19%, or $45 million, to $285.4 million led by Residential Sales which rose 22% year-over-year.

Residential was boosted by double digit sell-through growth in the quarter and expanded market presence across the Deck, Rail & Accessories and Exteriors categories.

TimberTech remains the cornerstone of the business.

However, adjusted Gross Profit Margin declined year-over-year by 190 basis points to 37.4% compared to 39.3% in the same quarter in 2023.

The AZEK Company Raised Full Year Sales Guidance

The AZEK Company is bullish on the rest of fiscal 2025 as it has had new product launches which are generating excitement from their contractor and dealer partners.

These include TimberTech Fulton Rail, TimberTech Reliance Rail, Versatex XCEED siding and TrimLogic, an exterior trim product made with up to 95% recycled PVC material.

The company raised its full year net sales guidance to a range of $1.52 to $1.55 billion from its previous guidance of $1.51 to $1.54 billion.

Analysts Raise The AZEK Company’s Full Year Earnings Estimates

Analysts are bullish too. 5 earnings estimates were revised higher in the last 30 days for fiscal 2025. That has pushed the Zacks Consensus up to $1.45.

That is earnings growth of 20.8% because The AZEK Company made $1.20 in Fiscal 2024.

Analysts are bullish about fiscal 2026 as well with 4 estimates being revised higher in the same period. That has pushed the Zacks Consensus up to $1.72, which is another 18.3% growth.

You can see what it looks like on the 5-year price and consensus chart.

Zacks Investment Research
Image Source: Zacks Investment Research

AZEK Shares Outperform the Last 6 Months

Shares of the AZEK Company have been volatile in 2025, following the trends of the market. But over the last 6 months, it is still outperforming that of the Vanguard S&P 500 Index (VOO).

Zacks Investment Research
Image Source: Zacks Investment Research

The AZEK Company is not a value stock. It trades with a forward price-to-earnings (P/E) ratio of 30.6. It has a Zacks Style Score of “F” which is the lowest Style Score you can have.

The AZEK Company also doesn’t pay a dividend.

But if you’re a growth investor looking for a company that is raising its guidance in 2025, The AZEK Company should be on your short list.


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