Here's Why Trex Stock Was Up 18% in April
Shares of Trex (NYSE: TREX) were up 18% in April, according to data provided by S&P Global Market Intelligence. The company didn't have news to report. But the stock did receive bullish coverage from analysts during the month, likely contributing to its gains. However, I believe there's something more to Trex's outperformance in April, considering stock of its rival The AZEK Company rose at an almost identical pace.
Both Trex and The AZEK Company manufacture products used for outdoor decking, among other things. Therefore, both companies primarily compete with pressure-treated lumber for consumer dollars. And right now, lumber prices are surging at an incredible pace. Regarding the increasing cost of lumber, Trex CEO Bryan Fairbanks said, "We've seen the price of lumber take off at this point and we see people coming in looking for composite products."
Image source: Getty Images.
Source Fool.com
