New York, January 11, 2026, 20:52 EST — The market has closed.
Trex Company, Inc. shares climbed 8.2% to $41.65 on Friday, bringing the composite-decking maker back into focus ahead of Monday’s U.S. trading. During the session, the stock fluctuated between $38.80 and $42.03.
The shift followed a surge in housing-related stocks after President Donald Trump announced plans to buy $200 billion in mortgage-backed securities — bonds tied to home loan pools — aiming to lower mortgage rates.
The SPDR S&P Homebuilders ETF jumped 5.2% on Friday, while the iShares U.S. Home Construction ETF surged 6.2%. Lennar’s shares gained roughly 8.9%, and D.R. Horton climbed 7.8%. Home Depot also saw a 4.2% increase. The broader S&P 500 ETF SPY ticked up about 0.6%.
Trex claims the title of the world’s largest maker of composite decking and railing, producing all of its products in the U.S. According to its latest annual report, the company’s boards combine reclaimed wood fibers with recycled polyethylene film, primarily marketed through distributors and home centers. (SEC)
Last week, Wolfe Research raised Trex to Outperform from Peer Perform and slapped on a $47 price target. The firm called consensus gross margin estimates for 2026 “conservative” and pointed out that the current valuation discount to historical averages “creates a margin of safety.”
On Jan. 6, UBS analyst John Lovallo upgraded Trex from Neutral to Buy, boosting his price target to $52 from $50, according to GuruFocus. (GuruFocus)
Trex’s stock took a hit after the company flagged headwinds from high interest rates and tighter household budgets weighing on major home improvement projects. CEO Bryan Fairbanks noted that “the second half of the season reflected the weaker market conditions,” and he anticipates the trend will continue through the typically slower fourth quarter. (Investopedia)
Investors remain cautious about whether policy moves can trim borrowing costs quickly enough to shift buyer behavior, or if falling rates just fuel demand without addressing supply shortages. “Every little bit will help push mortgage yields lower, but this might be self-defeating in terms of housing affordability,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters. (Reuters)
U.S. markets kick off Monday, but all eyes turn to Tuesday when the Labor Department will drop the December 2025 consumer price index at 8:30 a.m. ET. Any unexpected move in the data could shake up Treasury yields and mortgage rates, shaping the outlook for Trex and similar stocks. (Bls)
