Trex Co. (TREX) Stock Up After Upgrade at Zacks Investment Research

Trex Co. (NYSE: TREX) shares rose in value Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

Analysts at Zacks Investment Research upgraded shares of Trex Co. (NYSE: TREX) from Hold to Buy today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $57.75, a decrease compared to the opening price of $68.53. Trex Co. stock has a 52-week high of $72.21. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.

Trex Co. (NYSE: TREX) shares last traded at $68.41, an increase of $0.61 or 0.90% from the previous closing price. Opening at $68.53, they varied from $68.18 and $68.97 throughout the day.

Trex Co. (NYSE: TREX) now has a market cap of 2.00B.

Trex Co. (NYSE: TREX) Average Daily Trading Volume

13,197 shares crossed the trading desk yesterday, lower than the average, out of a total float 29,120,000. Investors often use increases in trading volume to pinpoint heavy volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to indicate that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.

Trex Co. (NYSE: TREX) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

Trades for Trex Co. (NYSE: TREX) have ranged from $31.11 – 72.21, and the stock now has a 50-day MA of $59.93 and 200-day MA of $53.78. Today’s last price is 5.26%% under the 52 week high of $72.21.

Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% for a 3 year period.

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