Thesis
Trex (TREX) is guiding for modest Q4-18 Residential revenue growth of 5% after the company experienced 13% Residential revenue growth through the first nine months of 2018. The Q4-18 expectation of 5% growth pales in comparison to the 15% Residential revenue growth seen in Q4-17.
While Trex may beat the low Q4-18 revenue growth expectations of 5%, it remains to be seen if 2019 can match the company's strong double-digit revenue growth in 2018. Consumer confidence is declining, and it remains to be seen if the declines are temporary (reaction to stock