Thesis
Q2-19 showed that Trex (TREX) continues to see strong demand for its residential decking products as the company continues to rectify production throughput issues of its product.
That said, the recent dramatic price run-up as a result of a quarter that was good--but not great--may have buyers at $89 set up for disappointment over the next year.
Risks of a recession remain. The trade war with China remains unresolved. And consumer sentiment continues to decline. A continual downturn in consumer sentiment would be a negative for Trex as the company is dependent