Trex Company Inc. Is Building Something Big

When Trex Company Inc. (NYSE: TREX) reported an estimate-crushing earnings report after the market closed on Oct. 30, investors were rewarded with a huge day when shares started trading on Oct. 31. By the end of the day, Trex's stock had jumped a whopping 25% to more than $107 per share, a tidy sum most investors would be happy with over a couple of years.

So what's driving Trex's results and its profits up? In short, operating leverage that's throwing off a ton of cash, with strong -- and growing -- demand for its products. Even better, there are some signs that demand is on track to remain strong. Let's take a closer look.

Image source: Trex Company.

Source: Fool.com