Is a Housing Crunch About to Tear Down This Stock?
The housing market has been a hot topic in the last year. Low interest rates fueled soaring prices, and homes on the market are at historic lows. The increased equity, tight supply, and amount of time spent at home during the pandemic have led to a wave of home renovation.
All of those moving pieces are wind in the sails of composite-decking maker Trex (NYSE: TREX). But now that interest rates have spiked, the virtuous cycle could be shifting into reverse. Let's look at the numbers to see how concerned shareholders should be.
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Source Fool.com
