Thesis
After guiding for modest Q4 Residential revenue growth of 5%, Trex (TREX) easily beat it with 11% growth. The company had a strong year, posting Residential revenue growth of 13%.
Though consumer confidence declined in January following the federal government shutdown, consumer confidence jumped in February and the consumer may be in good shape. Strong consumer confidence is typically indicative of sales growth prospects for Trex. That said, guidance is still tempered at 3% Residential revenue growth guidance going into Q1-19. The company does not provide annual guidance.
At $75, shares look