TREX - Why Trex Stock Lost 27% in August
Shares of Trex (NYSE: TREX) , a manufacturer of composite decking products, were swooning last month as the company slashed its guidance for the year in its second-quarter report. Like homebuilders and other housing stocks , Trex is seeing stiff headwinds in the market as interest rates rise and consumer demand for home improvement products cools.
According to data from S&P Global Market Intelligence , the stock finished August down 27%. As you can see from the chart below, Trex shares fell on the company's earnings report in the second week of the month, and continued to slide as market sentiment soured over comments from Federal Reserve Chair Jerome Powell about economic pain resulting from interest rate hikes.
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Why Trex Stock Lost 27% in August