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Strength Seen in Trex (TREX): Can Its 6.5% Jump Turn into More Strength?
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Trex (TREX - Free Report) shares soared 6.5% in the last trading session to close at $86.80. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.6% gain over the past four weeks.
The company has been riding high on its focus on automation, modernization, energy efficiency and raw material processing.
This maker of fencing and decking products is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -17.4%. Revenues are expected to be $193.29 million, up 0.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Trex, the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TREX going forward to see if this recent jump can turn into more strength down the road.
Trex belongs to the Zacks Building Products - Wood industry. Another stock from the same industry, UFP Industries (UFPI - Free Report) , closed the last trading session 2.5% higher at $116.27. Over the past month, UFPI has returned -4.8%.
For UFP Industries, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.68. This represents a change of -20% from what the company reported a year ago. UFP Industries currently has a Zacks Rank of #2 (Buy).
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Strength Seen in Trex (TREX): Can Its 6.5% Jump Turn into More Strength?
Trex (TREX - Free Report) shares soared 6.5% in the last trading session to close at $86.80. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.6% gain over the past four weeks.
The company has been riding high on its focus on automation, modernization, energy efficiency and raw material processing.
This maker of fencing and decking products is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -17.4%. Revenues are expected to be $193.29 million, up 0.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Trex, the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TREX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Trex belongs to the Zacks Building Products - Wood industry. Another stock from the same industry, UFP Industries (UFPI - Free Report) , closed the last trading session 2.5% higher at $116.27. Over the past month, UFPI has returned -4.8%.
For UFP Industries, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.68. This represents a change of -20% from what the company reported a year ago. UFP Industries currently has a Zacks Rank of #2 (Buy).