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TREX Expands Product Portfolio With New Trex Select T-Rail

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Trex Company, Inc. (TREX - Free Report) expands its product footprint with the new Trex Select T-Rail. This is a composite railing system that features a popular T-shaped top rail, designed to approach a broader customer band with pricing that is leveled with PVC vinyl railing.

The Trex Select T-Rail’s classic T design comes with two infill options — square composite balusters in Classic White and round aluminum balusters in Charcoal Black. The versatility of the T-Rail design gives TREX a competitive edge over its peers in the deck railing market.

Also, Trex continues its sustainability practice by using a minimum of 40% recycled materials for the manufacturing of the products. This product line reflects competitive pricing, high performance and low maintenance.

Zacks Investment Research
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Shares of TREX grew 3.9% during the trading session on Jun 1. The stock has increased 26.1% in the year-to-date period against the Zacks Building Products - Wood industry’s decline of 1.3%.

Emphasis on Portfolio Development

TREX’s consistent product portfolio development and strategic sale initiatives help it to maintain growth momentum, despite various macroeconomic and inflationary risks. It gains from improved manufacturing performance and other cost-containment actions. Also, the company’s sound relationships with its top-notch channel partners in the industry assisted it to achieve industry-leading margins and profitability.

In first-quarter 2023, TREX engaged in delivering innovative new products that meet the evolving needs of consumers, strengthening its market leadership position along with creating demand. Its product development initiatives had a positive outlook, accelerating its growth momentum. As of the end of the quarter, the company’s plants produced at an annual revenue rate of $1 billion, attributable to its ability to efficiently and swiftly mold its production levels based on the demand pattern.

In the first quarter of 2023, TREX witnessed a sequential rise in its gross margin to 39.6% from 34.1% reported in fourth-quarter 2022. The upside was backed by improved raw material usage. The company also capitalized on the opportunity to upgrade its equipment and generate operating efficiencies.

Zacks Rank & Key Picks

TREX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some top-ranked stocks that investors may consider from the Zacks Construction sector.

Martin Marietta Materials, Inc. (MLM - Free Report) currently sports a Zacks Rank #1. MLM delivered a trailing four-quarter earnings surprise of 31%, on average. Shares of the company have gained 19.7% in the year-to-date period.

The Zacks Consensus Estimate for MLM’s 2023 sales and EPS indicates growth of 19% and 32.1%, respectively, from the previous year’s reported levels.

Vulcan Materials Company (VMC - Free Report) currently carries a Zacks Rank #1. VMC has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of the company have gained 13.6% in the year-to-date period.

The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates growth of 5.9% and 26.2%, respectively, from the previous year’s reported levels.

Watsco, Inc. (WSO - Free Report) currently sports a Zacks Rank #1. WSO delivered a trailing four-quarter earnings surprise of 5.3%, on average. Shares of the company have gained 31.2% in the year-to-date period.

The Zacks Consensus Estimate for WSO’s 2023 sales and EPS indicates growth of 3.1% and 2.2%, respectively, from the previous year’s reported levels.

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