Dj Chmn Southern Gifts 2832 Of Louisiana-Pacific Corp >Lpx

Trex Company, Inc. TREX has strengthened its partnership with Boise Cascade Company BCC, a major distributor of building products. Going forward, Trex will be the exclusive brand of composite decking and railings sold through participating Boise locations nationwide. This expanded collaboration also includes incremental Trex distribution in New Jersey and the surrounding areas.

This move aligns with TREX's significantly expanded product offerings. The company has filled product gaps and developed a well-structured portfolio, allowing channel partners to compete effectively in key decking and railing categories. TREX boasts the industry’s strongest distribution network, with products available in more than 6,700 retail outlets across six continents.

Trex has expanded its decking portfolio with products like Trex Signature and Trex Transcend Lineage. The company also launched a full collection of Trex-branded deck fasteners. With its range of fasteners, fascia, cladding and lighting options, Trex provides complete solutions for a smooth and worry-free deck-building experience. In addition, TREX recently introduced a wide range of new railing profiles and materials, making its collection the largest and most diverse in the category.

TREX Stock’s Price Performance

Shares of this Winchester, VA-based, wood and plastic composite products manufacturer and distributor have gained 11.3% in the past month compared with the Zacks Building Products - Wood industry’s 4.3% growth. The company has been reaping the rewards of robust demand for its premium products and cost-reduction efforts.

New product development has been pivotal, with recent innovations such as steel, mesh and aluminum railing systems and heat-mitigating technology in new decking colors aligning well with consumer preferences. This product expansion supports Trex’s strategic goal of doubling its share of the railing market in five years.

The improving trend is clear from TREX’s estimate revision trend as well. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) indicates 4.3% and 10.2% year-over-year growth, respectively. The company also delivered a trailing four-quarter earnings surprise of 9%, on average.

TREX’s Zacks Rank & Key Picks

Trex currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

EMCOR Group, Inc. EME currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EME delivered a trailing four-quarter earnings surprise of 32.3%, on average. The stock has risen 132.9% in the past year. The Zacks Consensus Estimate for EME’s 2024 EPS indicates growth of 55.6% from the prior-year reported levels.

Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 21.5%, on average. STRL shares have surged 178.7% in the past year.

The consensus estimate for STRL’s 2024 sales and EPS implies increases of 9% and 33.3%, respectively, from the prior-year reported levels.

Louisiana-Pacific Corporation LPX presently sports a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has risen 82.5% in the past year.

The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates improvements of 12.7% and 72.1%, respectively, from a year ago.

Zacks Investment Research

Johnson Controls International plc JCI has upgraded the Artificial Intelligence (AI) capabilities in its OpenBlue Enterprise Manager suite (part of the OpenBlue digital ecosystem). These updates feature the first generative AI applications for customers, improved building controls and a better user experience.

The OpenBlue digital ecosystem is a suite of interconnected smart building solutions to improve the performance, efficiency and sustainability of buildings. It leverages cutting-edge technologies such as Internet of Things (IoT), AI, data analytics and cloud computing to optimize building operations.

The new AI features include energy-saving tools, personalized user experiences, enhanced data insights for managing building visitors, improved monitoring of indoor air quality and automatic adjustments based on system issues. It enhances data insights, leveraging the benefits customers are already experiencing with OpenBlue.

With the help of OpenBlue Enterprise Manager, equipment upgrades and proactive services, businesses are saving a maximum of 30% on energy and 20% on maintenance and optimizing space by 10%. This improves efficiency, reduces costs and helps both the environment and the bottom line. The system now supports more than 130 types of energy-saving projects and has automated building control features.

JCI’s Zacks Rank

JCI currently carries a Zacks Rank #4 (Sell). In the past year, the company’s shares have gained 65.3% compared with the industry’s 29.8% growth.

The company is experiencing weakness across its Building Solutions Asia Pacific segment. Also, the escalating cost of sales poses a threat to Johnson Controls’ bottom line. Increased material cost inflation is pushing up its cost of sales.

Stocks to Consider

Some better-ranked companies are discussed below.

Louisiana-Pacific Corporation LPX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LPX delivered a trailing four-quarter average earnings surprise of 30.7%. In the past 60 days, the Zacks Consensus Estimate for Louisiana-Pacific’s 2024 earnings has increased 9.9%.

PotlatchDeltic Corporation PCH presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 50%.

In the past 60 days, the consensus estimate for PCH’s 2024 earnings has increased more than 100%.

RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 2.5%.

In the past 60 days, the consensus estimate for RBC Bearings’ fiscal 2025 earnings has increased 2.3%.

Zacks Investment Research