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Trex (TREX) Partners With Danver, Boosts Product Offering

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Trex Company, Inc. (TREX - Free Report) has partnered with Danver Stainless Outdoor Kitchens, a leader in luxury stainless steel outdoor kitchens, to offer a new selection of luxurious cabinetry and components.

With this new partnership, Trex intends to come up with new and revamped Trex Outdoor Kitchens collection, which will officially debut at the 2020 International Builders’ Show in Las Vegas later this month. The new collection will include industry-leading stainless steel cabinetry solutions for today’s outdoor kitchens, comprising seven distinctive door styles including Danver’s top-five sellers and two designs exclusive to Trex Outdoor Kitchens.

Trex is the leader in decking, railing and in high-performance, low-maintenance outdoor living products. The company is a leading national provider of custom-engineered railing systems. With this latest partnership, the Trex Outdoor Kitchens collection will be able to offer configurable cabinetry options that are designed and engineered specifically for outdoors where durability is supreme.

The appeal of the Trex brand, value proposition of its products, strong demand for the new Enhance product line and positive market conditions have been driving Trex’s performance. The company also gives special emphasis on new products. Currently, Trex has been concentrating on North America but expanding shipments in Europe, in particular, in a bid to primarily focus on the consumer side of the business.

The company’s net sales in third-quarter 2019 advanced 17% year over year, led by 24% growth in Trex Residential Products. Trex Residential gross margin also improved 170 basis points sequentially in the quarter, reflecting improved production performance, cost savings and higher capacity utilization.



Shares of Trex have gained 36.6% in the past year, outperforming the Zacks Building Products – Wood industry’s 28.9% growth. The price performance was backed by the company’s solid financial results and earnings surprise history. Trex delivered positive surprises in 11 of the last 13 quarters.

Zacks Rank

Trex — which shares space with Universal Forest Products, Inc. (UFPI - Free Report) , Louisiana-Pacific Corporation (LPX - Free Report) and Weyerhaeuser Company (WY - Free Report) in the same industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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