Stock Story -
What Happened:Shares of composite decking and railing products manufacturer Trex Company (NYSE:TREX) fell 22.1% in the morning session after the company reported second quarter earnings results. Its full-year revenue guidance missed, and its revenue guidance for the next quarter fell short of Wall Street's estimates. Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Trex? Find out by reading the original article on StockStory, it's free.
What is the market telling us:Trex's shares are very volatile and over the last year have had 12 moves greater than 5%. But moves this big are very rare even for Trex and that is indicating to us that this news had a significant impact on the market's perception of the business.
Trex is down 24.4% since the beginning of the year, and at $60.95 per share it is trading 39.1% below its 52-week high of $100.10 from March 2024. Investors who bought $1,000 worth of Trex's shares 5 years ago would now be looking at an investment worth $1,496.
![Why Trex (TREX) Shares Are Sliding Today](https://d68-invdn-com.investing.com/content/picfd568458f2dfefd3320b1c7a23e45a6a.jpeg)