AZEK - The AZEK Company: More Upside Possible
2024-03-24 08:44:24 ET
Summary
- The AZEK Company experienced robust growth in the decking business, with strong sell-through growth benefiting the company's revenue.
- The company's margin is expected to continue growing due to volume growth and improved efficiencies.
- Promising margin prospects make this stock a decent buy at the current valuation.
The Thesis
The AZEK Company ( AZEK ) experienced robust growth in the decking business during the quarter. Sell-through growth was also strong, which benefited the company's topline. I believe this growth to continue further in FY24 benefiting the company's revenue in the near term. The long term also looks good due to anticipated benefits from strategic initiatives including new product development and shelf space share gains, strong market position of the company in the Decking side, and secular tailwinds in the residential R&R market, as approximately 95% of decking sales are related to R&R....
The AZEK Company: More Upside Possible