Key Takeaways BILL offers SMBs one platform for invoices, approvals, payments, expenses and cash flow.BILL grew Q3 FY26 revenues 13% to $406.6M; payment volume hit $89B on 34M transactions.BILL held nearly $1B cash, $1.18B short-term investments and okayed a $1B share buyback. BILL Holdings (BILL - Free Report) is still building a stronger case for investors who want exposure to small-business financial software. The company is not just selling basic payment tools. It is creating a broader financial operations platform that helps small and midsize businesses manage invoices, approvals, payments, expenses and cash flow in one place. While risks remain, especially because SMB demand can weaken in a slow economy, BILL’s latest numbers and strategy point to several reasons for optimism.
Earlier this month, BILL Holdings posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate of 55 cents by 23.6%. The figure increased 36% from the year-ago quarter.
Quarterly revenues of $406.6 million topped the consensus mark of $403.1 million by 0.9% and rose 13.5% year over year. The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
Image Source: Zacks Investment Research
BILL shares have declined 13.1% over the past three months against the industry’s growth of 4.2%. However, its EPS estimate revisions call for a bullish outlook and suggests adding the stock now. BILL currently sports a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Factors That Make BILL Holdings Stock a Solid PickRevenue Growth Remains Healthy: BILL continues to grow at a steady pace. In third-quarter fiscal 2026, total revenues rose 13% year over year to $406.6 million, while core revenues increased 16% to $371.1 million. The company also processed $89 billion in total payment volume, up 12%, and handled 34 million transactions, up 14%. Management’s fiscal 2026 outlook calls for total revenues of $1.642-$1.652 billion, suggesting the growth story is still intact.
Product Portfolio Keeps Getting Bigger: The company has used acquisitions to expand beyond accounts payable and receivable. Divvy added spend and expense management, Finmark brought financial planning and analysis tools, and Invoice2go strengthened receivables capabilities. This wider product set gives BILL more ways to serve the same customer, which can support higher retention and more cross-selling over time.
AI Could Make the Platform More Valuable: BILL is leaning heavily on AI-led automation. Its agents help with invoice coding, supplier management and payment execution, and more than 100,000 customers have used these tools. The company has also launched BILL Travel, which it says can sharply reduce time spent on travel workflows. For busy SMBs, saving time is a real selling point.
Partners Help Expand Its Reach: BILL works with more than 9,500 accounting firms and has relationships with major financial institutions. These partnerships help the company reach more businesses without relying only on direct sales. Its network of roughly 8.3 million suppliers and clients also makes the platform more useful as adoption grows.
Balance Sheet Adds Flexibility: BILL ended March 31, 2026, with nearly $1 billion in cash and cash equivalents, plus $1.18 billion in short-term investments. It also generated $84.7 million in free cash flow during the quarter. The new $1 billion share repurchase authorization gives management another way to create shareholder value while still investing in growth.
Other Stocks to ConsiderSome other top-ranked stocks from the sector are Paycom Software, Inc. (PAYC - Free Report) and Flywire Corporation (FLYW - Free Report) . While Paycom Software sports a Zacks Rank #1, Flywire has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paycom Software’s 2026 EPS has been revised 2.5% over the past month and calls for a 15% increase year over year.
The consensus estimate for Flywire’s full-year 2026 EPS has been revised two cents upward in the past 7 days to 42 cents, which implies a significant increase from the year-ago period.
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On May 15, 2026, Light Street Capital Management disclosed a sale of 253,000 shares of BILL Holdings (BILL +2.74%), estimated at $11.32 million based on quarterly average pricing.
What happenedAccording to the SEC filing dated May 15, 2026, Light Street Capital Management reduced its position in BILL Holdings by 253,000 shares in the first quarter. The estimated transaction value was $11.32 million, based on the average closing price over the quarter. The value of the BILL stake fell by $23.95 million from the previous quarter, a figure that reflects both share sales and changes in market price.
What else to knowThe fund executed a sell, leaving BILL at 4.48% of reportable 13F AUM after the quarter’s tradesTop holdings after the filing:NYSE: TSM: $76,912,351 (15.47% of AUM)NASDAQ: NVDA: $47,474,122 (9.55% of AUM)NASDAQ: AVGO: $46,364,598 (9.32% of AUM)NASDAQ: AMD: $44,602,231 (8.97% of AUM)NASDAQ: CHYM: $38,913,729 (7.82% of AUM)As of Friday, BILL shares were priced at $36.14, down 18% over the past year and well underperforming the S&P 500, which is up about 28%.Company overviewMetricValueRevenue (TTM)$1.60 billionNet income (TTM)$163,000Price (as of market close May 14, 2026)$39.49One-year price change(18%)Company snapshotBILL offers cloud-based software for automating back-office financial operations, including accounts payable, accounts receivable, and spend management solutions.The firm generates revenue through a software-as-a-service (SaaS) model, transaction-based fees, and value-added services such as onboarding and ongoing support.It targets small and midsize businesses, accounting firms, financial institutions, and software companies as primary customers.BILL leverages a SaaS business model to deliver scalable, recurring revenue while streamlining financial processes for its clients.
What this transaction means for investorsBILL stock has struggled over the past year as investors recalibrated expectations for fintech growth, but the underlying operating trends remain considerably stronger than the share price performance suggests.
In its latest quarter, BILL reported revenue of $406.6 million, up 13% year over year, while core revenue, which excludes interest income on customer funds, grew 16% to $371.1 million. The company also swung back to profitability, generating $12.8 million in net income compared with a loss a year earlier. Meanwhile, payment volume reached $89 billion, and transactions processed climbed 14% to 34 million.
Management sounded notably confident. Founder and CEO René Lacerte said BILL's platform continues to create significant value for customers and highlighted AI as an "extraordinary opportunity" to solve more customer pain points. The company also authorized a new $1 billion share repurchase program, a sign that leadership believes the stock offers attractive long-term value.
For long-term investors, the key question is whether BILL can keep translating growing payment volume and customer engagement into sustained earnings growth. If it can, today's valuation may ultimately look more like an opportunity than a warning sign.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Bill Holdings, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
SAN JOSE, Calif.--(BUSINESS WIRE)--BILL (NYSE: BILL), the intelligent financial operations platform trusted by nearly half a million businesses to manage, move, and maximize their money, today announced executive leadership appointments and organizational updates to position the company for its next phase of market leadership. The changes will take effect in the fourth quarter of fiscal 2026. “BILL is at a pivotal moment in our journey. As we continue our transformation into an AI native compan.
Three weeks after announcing mass job cuts, BILL is instituting an overhaul of its leadership team.
The financial operations platform said Tuesday (May 26) that it was making several changes to its executive team as it increases its focus on artificial intelligence.
“BILL is at a pivotal moment in our journey,” said René Lacerte, founder and CEO of BILL.
“As we continue our transformation into an AI native company serving nearly 500,000 businesses, we’re evolving our leadership team and organizational structure to align with our highest priorities and position BILL for the future.
“The changes will strengthen our operational focus, accelerate innovation, deepen customer value, and reinforce BILL as the trusted platform our customers rely on to run and grow their businesses,” Lacerte added.
Those changes include promoting Michael Cieri, currently BILL’s general manager of software solutions, to chief product officer, overseeing product management, product marketing, design, research and product strategy.
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Sarah Acton, the company’s chief customer officer (CCO), is leaving after nearly five years on the leadership team. Rather than name a new CCO, BILL says it plans to announce a new chief revenue officer in the coming weeks.
Also leaving is Chief Technology Officer Ken Moss, who will be replaced by Erin Chan, a distinguished engineering fellow at BILL and its founding engineer.
“Chan will lead BILL’s AI platform strategy and execution as we scale through this next phase and expand the company’s AI capabilities,” the release said.
President and Chief Operating Officer John Rettig, who has been with BILL for more than a decade, will move into the newly created position of Chief Strategy and Transformation Officer.
Lastly, Mary Kay Bowman, general manager of payments and financial services, will depart the company after nearly three years, but continue as an advisor.
The announcement comes on the heels of BILL’s decision earlier this month to reduce its workforce by 30% as it accelerates the use of AI in its own operations and its financial operations platform for businesses and accounting firms.
Speaking during an earnings call, Lacerte noted that he had on early calls referred to AI as one of BILL’s three main priorities.
“The tangible proof points we have seen rapidly deploying new agents to create more value for customers and driving greater productivity for employees have made it clear that this is no longer one priority among three. It is our No. 1 priority,” Lacerte said.
See More In: AI, AI layoffs, artificial intelligence, B2B, B2B Payments, bill, financial operations, News, personnel, PYMNTS News, What's Hot, What's Hot In B2B
SAN JOSE, Calif.--(BUSINESS WIRE)--BILL (NYSE: BILL), the financial operations platform trusted by nearly half a million businesses to manage, move and maximize their money, announced today its participation in the BofA Securities Global Technology Conference in San Francisco on Wednesday, June 3, 2026 at 8:40 a.m. PDT.
A live webcast of the event will be accessible at https://investor.bill.com. Webcast replays can be accessed from BILL’s Investor Relations website for approximately thirty days. Please note the presentation time is subject to change.
About BILL
BILL (NYSE: BILL) is the intelligent finance platform trusted by nearly half a million businesses and their accountants to manage, move, and maximize their money. BILL powers businesses ranging from fast-moving startups to growing companies with complex operations. We use AI to deliver strategic finance capabilities in one integrated platform that includes AP, AR, expenses, forecasting, procurement and more. With a member network of more than 8 million, BILL’s platform processes ~1% of US GDP annually. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and software providers. For more information, visit bill.com.
Investors looking for stocks in the Internet - Software sector might want to consider either BILL Holdings (BILL) or Palantir Technologies Inc. (PLTR). But which of these two stocks presents investors with the better value opportunity right now?
BILL Holdings is a category-leading SMB financial operations SaaS platform, trading at 1.9x FY2028e core revenue and 8.1x adjusted FCF multiple. Despite a 16% stock decline since May 2025, BILL continues to outperform guidance, expand margins, and accelerate AI-native transformation. A $1B share repurchase (25%+ of market cap) and raised FY26 operating income guidance underscore management's confidence in long-term growth and FCF generation.
New York, New York--(Newsfile Corp. - June 2, 2026) - Precoro, a procurement centralization and automation platform that delivers enterprise-level capabilities to mid-market organizations, today announced an API integration with BILL (NYSE: BILL), the intelligent finance platform trusted by nearly half a million businesses to manage, move, and maximize their money. Through this integration, mid-market finance and procurement teams can now connect purchasing workflows directly to payment execution, helping them reduce manual work, eliminate financial blind spots, and automate the full procure-to-pay cycle.
Precoro
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"We're focused on giving mid-market companies enterprise-level control without the complexity of traditional ERP systems," said Andrew Zhyvolovych, CEO of Precoro. "Integrating with BILL allows us to connect procurement and payments into one continuous workflow, giving teams real-time visibility and enabling them to scale efficiently while maintaining full control over every transaction."
As companies grow, procurement, approvals, invoicing, and payments are often managed across separate systems, creating gaps between purchasing decisions and financial execution. This disconnect forces finance teams to rely on manual reconciliation, work with delayed or incomplete data, and apply controls inconsistently—leading to errors, late payments, and limited visibility into actual cash flow and liabilities.
The BILL API integration addresses this challenge by connecting Precoro's spend governance to BILL throughout the entire procurement process. Organizations that have established procurement policies and approval workflows in Precoro can now ensure that only validated, pre-approved spend flows into BILL for payment, and receive real-time payment status updates in Precoro through the integration. This creates a seamless P2P workflow where every transaction is validated before payment and fully traceable after, giving teams complete visibility and confidence in every dollar spent.
"At BILL, innovation is driven by the real-world needs of the nearly half a million businesses we serve," said Mike Cieri, Chief Product Officer at BILL. "As businesses grow, their financial systems must scale with them. We design our technology to connect seamlessly with the tools finance teams rely on every day. By integrating with Precoro through our API, we're helping customers unify critical workflows so they can operate more efficiently and scale with confidence."
Highlights of the BILL integration:
Through the integration with BILL, customers can:
Enforce proactive spend governance across all entities: Ensure every purchase aligns with budgets and company policies before any commitment is made, effectively eliminating overspend and maverick buying.Accelerate purchasing and invoice processing with AI-powered precision: Replace manual data entry with AI for intake, receipts, and invoices, paired with automated three-way matching, ensuring that only validated, pre-approved data flows into BILL for seamless payment execution.Eliminate financial blind spots with real-time synchronization: Gain a unified view of spend through a robust two-way sync that updates payment statuses instantly across both platforms, giving teams total clarity on cash flow and upcoming financial commitments.Scale complex operations through connected workflows: Support multiple subsidiaries and high transaction volumes by streamlining P2P workflows, allowing growing teams to manage more spend without increasing administrative headcount.The Precoro and BILL integration is available today.
About Precoro
Precoro is an AI-powered procurement centralization and automation platform that enables businesses to centralize procurement across multiple subsidiaries, improving visibility and control over spend and reducing risks from fragmented processes.
To learn more, visit: https://precoro.com/.
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Shares of BILL Holdings (BILL - Free Report) have gained 0.4% over the past four weeks to close the last trading session at $38.47, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $54.81 indicates a potential upside of 42.5%.
The average comprises 21 short-term price targets ranging from a low of $42.00 to a high of $77.00, with a standard deviation of $10.11. While the lowest estimate indicates an increase of 9.2% from the current price level, the most optimistic estimate points to a 100.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for BILL, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in BILLThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 50.3% over the past month, as five estimates have gone higher compared to no negative revision.
Moreover, BILL currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much BILL could gain, the direction of price movement it implies does appear to be a good guide.
Shares of Trex Company, Inc. (NYSE:TREX – Get Free Report) have received an average rating of “Hold” from the twenty-three ratings firms that are currently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and ten have assigned a buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $47.7750.
A number of research analysts have commented on the stock. Jefferies Financial Group upgraded shares of Trex from a “hold” rating to a “buy” rating and raised their price target for the stock from $39.00 to $42.00 in a research note on Monday, December 15th. Zacks Research upgraded Trex from a “strong sell” rating to a “hold” rating in a research note on Tuesday, February 3rd. DA Davidson increased their target price on Trex from $50.00 to $51.00 and gave the stock a “buy” rating in a report on Wednesday, March 11th. Barclays raised their target price on Trex from $32.00 to $39.00 and gave the stock an “underweight” rating in a research report on Wednesday, February 25th. Finally, The Goldman Sachs Group set a $54.00 price target on Trex and gave the company a “buy” rating in a research note on Tuesday, December 16th.
Get Our Latest Stock Analysis on Trex
Institutional Investors Weigh In On Trex Institutional investors and hedge funds have recently made changes to their positions in the company. V Square Quantitative Management LLC acquired a new stake in shares of Trex during the 4th quarter worth about $27,000. Steigerwald Gordon & Koch Inc. acquired a new position in Trex in the third quarter valued at about $31,000. Clearstead Trust LLC acquired a new position in Trex in the fourth quarter valued at about $33,000. Eurizon Capital SGR S.p.A. bought a new stake in Trex during the fourth quarter worth about $47,000. Finally, Empowered Funds LLC bought a new stake in Trex during the fourth quarter worth about $50,000. Institutional investors and hedge funds own 95.96% of the company’s stock.
Trex Price Performance Shares of Trex stock opened at $35.42 on Tuesday. Trex has a 52-week low of $29.77 and a 52-week high of $68.78. The firm has a market capitalization of $3.68 billion, a PE ratio of 20.01, a price-to-earnings-growth ratio of 8.18 and a beta of 1.58. The company’s fifty day moving average price is $40.42 and its two-hundred day moving average price is $41.54.
Trex (NYSE:TREX – Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The construction company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.05. Trex had a net margin of 16.22% and a return on equity of 20.29%. The company had revenue of $161.13 million during the quarter, compared to the consensus estimate of $144.39 million. During the same period last year, the firm earned $0.09 EPS. The firm’s revenue for the quarter was down 3.9% compared to the same quarter last year. Analysts predict that Trex will post 2.04 earnings per share for the current fiscal year.
Trex Company Profile (Get Free Report)
Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.
Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.
Further Reading Five stocks we like better than Trex
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Outdoor Living Leader Ranked #2 in Construction for Outstanding Customer, Employee and Investor Trust
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company [NYSE:TREX], the world’s largest manufacturer of wood-alternative composite decking and railing and a leader in high-performance, low-maintenance outdoor living products, has been named to Newsweek’s list of the Most Trustworthy Companies in America 2026. The company was also previously recognized on Newsweek’s list of America’s Most Responsible Companies 2024, underscoring its ongoing commitment to corporate responsibility and transparency.
"At Trex, trust is at the core of everything we do, from the way we design and manufacture our products to how we support our customers, partners and employees."
Share Presented by Newsweek in partnership with Statista Inc., a leading global statistics portal and industry ranking provider, the Most Trustworthy Companies in America list recognizes U.S.-based companies that have earned strong trust among key stakeholders – specifically customers, employees and investors – based on independent research and public sentiment. The 2026 roster includes 700 companies across 23 industries. In the Construction category, which includes a broad range of organizations spanning contractors, manufacturers and building products providers, Trex ranked #2 out of the 15 recognized companies and is the only decking brand to earn a spot on the prestigious list.
This latest honor follows Trex being named America’s Most Trusted® Decking Brand^ for the sixth consecutive year, further reinforcing the company’s reputation for delivering reliable, high-quality products and maintaining strong relationships with its stakeholders.
“At Trex, trust is at the core of everything we do, from the way we design and manufacture our products to how we support our customers, partners and employees,” said Bryan Fairbanks, President and CEO of Trex Company. “Being recognized by Newsweek as one of the most trustworthy companies in America is a meaningful validation of our commitment to integrity, consistency and long-term performance.”
The Newsweek rankings are based on an independent survey of 25,000 U.S. residents, who submitted more than 101,000 evaluations of companies headquartered in the U.S. with annual revenues of at least $500 million. Participants assessed organizations across three key dimensions of trust:
Customer trust – fairness, product and service quality, complaint resolution and credibility of communications; Investor trust – long-term investment potential, corporate values and management competency; and Employee trust – workplace fairness, compensation, career development opportunities and overall employer attractiveness. In addition to survey data, the analyses incorporated a comprehensive social listening component, evaluating sentiment across a wide range of online sources, including news outlets, forums, social media platforms and press coverage.
“Earning the trust of our stakeholders requires a continuous focus on accountability, innovation and doing what’s right,” added Fairbanks. “We are proud to be recognized alongside other leading organizations and remain committed to building on this foundation of trust for years to come.”
The Most Trustworthy Companies in America 2026 list was announced on April 1, and can be viewed on Newsweek’s website. To learn more about Trex Company, visit trex.com.
About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable wood-alternative decking and residential railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
WINCHESTER, Va., April 07, 2026 (GLOBE NEWSWIRE) -- Trex Company [NYSE:TREX], the world’s largest manufacturer of wood-alternative decking and railing, and a leading brand of outdoor living products, has again been recognized for its ongoing commitment to sustainability, earning the title of Green Builder Media’s “Sustainable Brand Leader” in the decking category for the 16th consecutive year. In addition, the company’s new Trex® Refuge™ decking was selected by Green Builder editors as one of the most “Sustainable Products of the Year” for 2026, underscoring the brand’s dedication to innovation and durable, climate-resilient outdoor living solutions.
“Sixteen years of recognition speaks to the consistency behind our commitment to sustainability,” said Adam Zambanini, executive vice president and COO for Trex Company. “At Trex, we’re proving that performance-engineered outdoor products can be designed with purpose to reduce environmental impact while delivering the durability and aesthetics customers expect.”
A Long and Lasting Legacy of Sustainability Leadership
For more than three decades, Trex has been the benchmark for sustainability in outdoor building products. From pioneering the use of recycled materials in composite decking to designing high-performance products that last for decades, Trex consistently demonstrates that environmental responsibility and product excellence can go hand in hand.
Trex’s recognition as the Sustainable Brand Leader in the decking category every year for the past 16 years underscores its industry-leading approach to environmentally responsible manufacturing. The company’s sustainability initiatives span sourcing recycled materials, minimizing water use, repurposing manufacturing waste and optimizing energy efficiency, demonstrating a holistic commitment to embedding eco-conscious practices into every stage of operations.
“Trex has consistently demonstrated that sustainability and performance are not mutually exclusive,” said Matt Power, editor-in-chief of Green Builder magazine. “Their commitment to eco-friendly manufacturing and innovation sets the standard for the outdoor building products industry and inspires builders to make more responsible choices.”
Green Builder Media determines the industry’s most sustainable brands by combining market trends with results from its annual reader survey, which measures online brand sentiment, positive mentions and the opinions of eco-minded building professionals. Trex remains the only brand to earn top honors in the decking category every year since the program began in 2010.
Trex Refuge PVC Decking: Recognized for Sustainable Innovation
Each year, Green Builder Media reviews hundreds of building products to identify innovations that enhance sustainability, resilience, health and efficiency in the built environment for its “Sustainable Products of the Year” listing. Trex Refuge PVC decking earned recognition for its fire-resistant engineering and long-lasting performance.
Trex Refuge is an ignition-resistant PVC decking line designed to meet the needs of two key markets: fire-prone areas* and regions where consumers and contractors have a long history of working with PVC decking. It meets strict building codes while delivering Trex’s signature durability, aesthetic design and low-maintenance benefits. Tested to the industry’s most rigorous fire standards, Refuge decking resists ignition and slows flame spread in accordance with ASTM E84 Class A Flame Spread rating and IWUIC ASTM E2768 ignition resistance standards, providing peace of mind in fire-vulnerable areas* while delivering the performance and aesthetic appeal that PVC decking customers expect.
Available in two nature-inspired shades – Martis Valley, a sun-washed beige, and Point Reyes, a misty grey – Refuge boards resist fading and staining**, scratching, warping and rot. They require no sanding, staining or sealing and are backed by a 50-year Limited Residential Warranty**.
"At Trex, sustainability isn’t just part of what we do, it’s at the heart of everything we stand for,” noted Zambanini. “Our goal is to reduce environmental impact while giving homeowners and builders the products and tools they need to create beautiful, resilient outdoor spaces. Trex will keep pushing the boundaries of innovation to make outdoor living both inspiring and responsible.”
Green Builder Media is North America’s leading media group focused on green building and responsible growth. The full list of this year’s “Sustainable Brand Leaders” and “Sustainable Products of the Year” can be found in the March/April issue of Green Builder magazine.
For more information about Trex’s high-performance, eco-friendly products, visit Trex.com.
*Subject to local codes; consult with your builder/inspector.
**For details, visit trex.com/warranty and trex.com/care
About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and residential railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15th consecutive year. For more information, visit Trex.com.
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. [NYSE: TREX], the world’s largest manufacturer of wood-alternative composite decking and railing, and a leader in high-performance, low-maintenance outdoor living products, will issue its first quarter 2026 earnings release on Thursday, May 7, 2026, at 6:30 AM ET.
You are invited to participate in the Company’s conference call hosted by senior management on May 7, 2026, at 8:00 AM ET. Their prepared remarks will be followed by a question-and-answer session.
1Q26 Conference Call Date & Time:
Thursday, May 7, 2026, at 8:00 AM ET
To participate on the day of the call, dial 1-844-792-3734 or internationally 1-412-317-5126 approximately ten minutes before the call and tell the operator you wish to join the Trex Company Conference Call.
A live webcast of the conference call will be available in the Investor Relations section of the Trex Company website at 1Q26 Earnings Webcast. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available within 24 hours after the call on the Trex website. The audio replay will be available for 30 days.
About Trex Company, Inc.
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable wood-alternative decking and railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
On April 13, 2026, Trex Co Inc (TREX) shares rose 3.7% to a current price of $40.50. The stock has shown a significant rebound over the last week, gaining 12.4%
WINCHESTER, Va., April 21, 2026 (GLOBE NEWSWIRE) -- As communities nationwide prepare to celebrate Earth Day (April 22) and Arbor Day (April 24), Trex Company [NYSE:TREX], the world’s largest manufacturer of wood-alternative decking and railing, is spotlighting the environmental impact that has defined Trex for more than three decades: transforming recycled and reclaimed materials into performance-engineered outdoor living products. Since its founding, the company has diverted more than 5.5 billion pounds of waste polyethylene (PE) plastic film from landfills and waterways, making it one of the largest recyclers of plastic film in North America.
Long before sustainability became a buzzword, Trex pioneered a solution for difficult-to-recycle PE plastic film by using it as a key material in its industry-leading decking. Today, Trex manufactures its high-performance deck boards using 95% recycled and reclaimed materials – a model that gives new life to more than 1 billion pounds of plastic and wood scrap each year.
“At Trex, sustainability isn’t a seasonal message; it’s the foundation of our business,” said Amy Fernandez, Chief Sustainability Officer for Trex Company. “Earth Day and Arbor Day provide meaningful opportunities to reflect on how far circularity has come, and how much more progress is possible when innovation and environmental responsibility go hand in hand.”
Rethinking the Future of Plastic Film
At the heart of Trex’s sustainability strategy is the NexTrex® program, a nationwide material sourcing initiative that engages schools, nonprofits, municipalities, community groups, retailers, businesses and manufacturers in collecting PE film and upcycling it into durable and sustainable Trex composite decking. Because plastic film cannot be recycled in curbside bins with other recyclable materials like paper, cardboard and glass, the NexTrex program offers a simple way for consumers, companies and organizations to responsibly dispose of plastic film waste.
Today, the NexTrex program boasts more than 10,000 partners across three participation tiers: Grassroots, Community and Retail. Together, these dedicated partners contribute to the more than 370 million pounds of PE plastic recycled by Trex each year.
The NexTrex Grassroots Movement works together with eco-minded businesses, municipalities, educational institutions and other organizations to serve as drop-off locations where local community members can recycle plastic film. Partners are equipped with balers for bundling collected plastic film, and once 20-40 bales (roughly 20,000–40,000 pounds) are accumulated, Trex arranges pickup and transports the material to one of its three U.S. manufacturing facilities. Partners are compensated for the collected plastic, helping turn community waste into a viable revenue stream. Since its inception in 2022, the program has grown to include more than 100 partners, recycling more than 4 million pounds of PE film in 2025 alone.
The Community Recycling Challenge engages civic groups, houses of worship, scouting troops, K-12 schools, colleges/universities and more in plastic film collection. Participants weigh, record and deliver the plastic they’ve collected to be recycled for the chance to win prizes/gifts from Trex Company. In 2024 alone, more than 3,800 community groups participated, recycling more than 2.9 million pounds of PE film.
Through the Retail Recycling Program, Trex partners with grocery stores and major retailers to serve as convenient drop-off destinations for post-consumer plastic film. Retail partners are equipped with recycling bins for both everyday shoppers and participants in the Community Recycling Challenge to drop off their discarded plastic. Since 2024, the program has grown to include more than 10,000 retail stores across the country. From Waste to Wonder: Reclaimed Wood in Action
Reclaimed wood is the second key material in Trex’s high-performance composite decking. Trex never sources virgin timber to obtain wood, instead using wood scrap and sawdust from lumberyards, flooring makers, cabinet makers and other wood processing companies. Working closely with its reclaimed wood suppliers to understand the origins and certifications of the virgin timber they purchase, Trex estimates that 94% of the reclaimed wood it receives is from certified sustainable sources and agricultural waste.
Finding innovative material sources that benefit both the environment and real-world community challenges is an ongoing priority for Trex. For example, Trex’s production facility in Fernley, Nev., serves as a destination for orchard trees that have reached the end of their production life, providing a sustainable disposal solution for area farmers.
“Protecting natural resources isn’t just an aspiration, it’s a responsibility,” added Fernandez. “For more than 30 years, Trex has made recycling tangible by turning waste into something you can walk on, gather around and enjoy for decades. We hope consumers will join us by making small, meaningful choices that can add up to a lasting impact.”
In honor of Earth Day and Arbor Day, Trex is inviting Americans to take a simple step with a lasting impact by giving their household plastics a second life. These include everyday items such as grocery/retail bags, produce bags, sandwich bags, case overwrap, plastic wrap from paper towels and toilet paper, newspaper sleeves, dry cleaner bags, bubble wrap and flexible shipping pouches. A full list of qualifying materials can be found at NexTrex.com and collected plastics can be dropped off at any of the more than 10,000 partner locations nationwide, including Alaska and Hawaii. Find a drop-off location near you via the NexTrex Plastic Recycling Drop-off Directory and start making a difference today.
For businesses and organizations interested in learning more about NexTrex, email [email protected] or visit NexTrex.com. For more information about Trex Company’s sustainability initiatives and eco-friendly products, visit Trex.com.
About Trex Company, Inc.
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the wood-alternative decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and residential railing, and a leader in high-performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, deck lighting, outdoor kitchen components, fencing, pergolas, spiral stairs, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026) and included in Newsweek’s list of the “Most Trustworthy Companies in America 2026.” The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^2021-2026 DISCLAIMER: Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on the experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Media contact: Taylor Spanbauer
L.C. Williams & Associates
312/565-3900 [email protected]
Photos accompanying this announcement are available at:
Turning Waste into What's Next Trex manufactures its high-performance deck boards using 95% recycled and reclaimed materials – a mo... Rethinking the Future of Plastic Film The NexTrex program boasts more than 10,000 partners across three participation tiers: Grassroots, C...
Sustainability Pioneer Recognized as the Only Decking Brand on Prestigious National List
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company [NYSE:TREX], the world’s #1 brand of premium, sustainable, wood-alternative decking and railing and a leader in high-performance, low-maintenance outdoor living products, has been recognized as one of “America’s Climate Leaders 2026.” In a list published yesterday by USA Today, Trex was named among 500 U.S. companies that are making measurable progress in reducing their carbon footprint and taking meaningful climate action.
To compile this year’s ranking, USA Today’s research partner, Statista, evaluated approximately 2,000 companies across industries with revenues exceeding $50 million and publicly available, verifiable emissions data. The list includes those organizations that achieved the greatest reduction in core emissions intensity between 2022 and 2024, specifically Scope 1 and 2 greenhouse gas emissions relative to revenue.
“We are proud to be recognized as one of America’s Climate Leaders, which reflects the measurable progress we’ve made in reducing our operational footprint while continuing to grow our business,” said Amy Fernandez, Senior Vice President, Chief Legal Officer, Secretary and Chief Sustainability Officer at Trex Company. “As Trex celebrates 30 years of innovation this year, this honor is especially meaningful as it underscores a legacy of sustainability that has been core to our business since day one.”
The USA Today recognition is the latest milestone in Trex’s three-decade sustainability journey. Since its founding, the company has been a pioneer in eco-friendly manufacturing, transforming reclaimed wood and recycled plastic film into high-performance outdoor products. The company uses more recycled and reclaimed material than any other decking brand and is one of the largest recyclers of polyethylene film in North America.
Earlier this month, Trex was named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. The company has also been included among America’s Most Responsible Companies by Newsweek, recognized as one of the 100 Best ESG Companies by Investor’s Business Daily, and earned a place on Barron’s list of the 100 Most Sustainable U.S. Companies in both 2024 and 2025.
“At Trex, sustainability is not a standalone initiative; it’s embedded in how we innovate, manufacture and deliver products that help create more sustainable outdoor living spaces,” Fernandez added. “From sourcing recycled materials to advancing manufacturing efficiencies, we remain focused on driving solutions that benefit our customers, our communities and the planet.”
Formed in 1996, Trex has built its brand on innovation and environmental responsibility, transforming recycled wood and plastic film into durable, eco-friendly decking solutions. Today, the company offers a comprehensive portfolio of outdoor living products distributed through thousands of retail locations worldwide, helping homeowners create beautiful, long-lasting spaces with minimal upkeep.
To learn more about Trex Company, visit trex.com.
About Trex Company, Inc.
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the wood-alternative decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and residential railing, and a leader in high-performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, deck lighting, outdoor kitchen components, fencing, pergolas, spiral stairs, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026) and included in Newsweek’s list of the “Most Trustworthy Companies in America 2026.” The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^2021-2026 DISCLAIMER: Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on the experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Cwm LLC raised its stake in Trex Company, Inc. (NYSE:TREX – Free Report) by 182.0% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 85,995 shares of the construction company’s stock after buying an additional 55,495 shares during the quarter. Cwm LLC owned approximately 0.08% of Trex worth $3,017,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also modified their holdings of TREX. AQR Capital Management LLC boosted its position in shares of Trex by 17,551.6% during the 3rd quarter. AQR Capital Management LLC now owns 1,598,001 shares of the construction company’s stock valued at $81,498,000 after acquiring an additional 1,588,948 shares during the last quarter. Impax Asset Management Group plc increased its position in Trex by 93.0% during the third quarter. Impax Asset Management Group plc now owns 1,934,581 shares of the construction company’s stock worth $99,354,000 after purchasing an additional 932,247 shares during the last quarter. Wellington Management Group LLP increased its position in Trex by 86.8% during the third quarter. Wellington Management Group LLP now owns 1,974,096 shares of the construction company’s stock worth $102,002,000 after purchasing an additional 917,448 shares during the last quarter. Federated Hermes Inc. raised its stake in Trex by 90.6% during the third quarter. Federated Hermes Inc. now owns 1,469,878 shares of the construction company’s stock worth $75,949,000 after purchasing an additional 698,628 shares during the period. Finally, Bank of America Corp DE raised its stake in Trex by 93.1% during the second quarter. Bank of America Corp DE now owns 1,299,381 shares of the construction company’s stock worth $70,660,000 after purchasing an additional 626,452 shares during the period. 95.96% of the stock is owned by institutional investors and hedge funds.
Trex Price Performance Shares of TREX stock opened at $42.35 on Friday. Trex Company, Inc. has a 1-year low of $29.77 and a 1-year high of $68.78. The firm has a market cap of $4.40 billion, a PE ratio of 23.93, a price-to-earnings-growth ratio of 9.60 and a beta of 1.61. The company has a 50-day moving average of $39.14 and a two-hundred day moving average of $39.92.
Trex (NYSE:TREX – Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The construction company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.05. The business had revenue of $161.13 million for the quarter, compared to the consensus estimate of $144.39 million. Trex had a net margin of 16.22% and a return on equity of 20.29%. The business’s revenue was down 3.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.09 EPS. Sell-side analysts anticipate that Trex Company, Inc. will post 1.63 EPS for the current fiscal year.
Wall Street Analysts Forecast Growth TREX has been the subject of several analyst reports. BMO Capital Markets reissued an “outperform” rating and issued a $54.00 price target on shares of Trex in a research note on Thursday, January 8th. Barclays reduced their price target on shares of Trex from $39.00 to $35.00 and set an “underweight” rating on the stock in a research report on Wednesday, April 8th. DA Davidson upped their price objective on Trex from $50.00 to $51.00 and gave the company a “buy” rating in a report on Wednesday, March 11th. Robert W. Baird set a $48.00 price objective on Trex in a research report on Monday, January 12th. Finally, Benchmark cut Trex from a “buy” rating to a “hold” rating in a research note on Wednesday, February 11th. Ten equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Trex currently has a consensus rating of “Hold” and an average price target of $47.88.
Get Our Latest Stock Analysis on Trex
About Trex (Free Report)
Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.
Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.
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WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. [NYSE:TREX], the world’s largest manufacturer of wood-alternative composite decking and railing, and a leader in high-performance, low-maintenance outdoor living products, today announced the appointment of Zachary C. Lauer as Senior Vice President, Chief Operations Officer.
Lauer brings more than two decades of experience in operations, supply chain, and manufacturing leadership, including ten years with Trex. Most recently, he served as Senior Vice President, Supply Chain and Manufacturing. Prior to that, he held the role of Group Vice President, Supply Chain, and served in multiple leadership positions, including Vice President and Senior Director of the Company.
“Zach’s deep operational expertise and strong track record of leadership make him the ideal choice to serve as our Chief Operations Officer,” said Adam Zambanini, President and Chief Executive Officer of Trex. “His ability to drive performance across manufacturing and supply chain while fostering innovation in R&D will be critical as we execute on our strategic priorities.”
Before joining Trex, Lauer held numerous senior roles in supply chain, manufacturing, and engineering at Newell-Rubbermaid Company and Federal-Mogul. He holds an MBA from Villanova University and a BS in Aerospace Engineering from the United States Military Academy.
“I’m honored to take on this expanded role at Trex,” said Zach Lauer. “I look forward to working with our talented teams to strengthen our operations, enhance quality and safety, and accelerate meaningful innovation across the organization.”
In this role, Lauer will lead the Company’s manufacturing, supply chain, engineering, and R&D functions, driving operational excellence and enabling Trex’s continued growth.
About Trex Company, Inc.
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. For more information, visit Trex.com.
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Well Positioned Heading Into Peak Deck-Building Season with Recent Home Center Stocking Wins
Executes and Expands Significant Share Repurchase Program
Reaffirms Full Year 2026 Guidance
First Quarter Financial Highlights
Net sales of $343 million
Gross margin of 40.5%
Net income of $61 million and diluted earnings per share of $0.58
Adjusted net income of $62 million and adjusted diluted earnings per share of $0.59
Adjusted EBITDA of $103 million
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. [NYSE:TREX], the world’s largest manufacturer of wood-alternative composite decking and railing, and a leader in high-performance, low-maintenance outdoor living products, today announced financial results for the first quarter of 2026.
Commenting on the quarter, Adam Zambanini, President and CEO, said, “We entered 2026 with strong momentum and a renewed sense of energy and excitement driving the entire organization forward. During the quarter, Trex delivered solid results driven primarily by positive performance in our premium decking portfolio and supported by recent shelf space wins in retail. The Company also delivered strong margins, reflecting product mix, operational efficiencies and cost discipline.”
“During the quarter, we began to take decisive actions aligned with our new long-term strategic priorities, positioning the Company to return to above-industry growth through unmatched innovation, enhanced execution, and renewed investment in our brand, marketing, and customer experience.
Long-Term Strategic Priorities
Trex recently launched five priorities to define a focused, durable path to long-term profitable growth and increased shareholder value:
Create an Unbreakable Bond with End Users: Deepen brand preference and loyalty across consumers, contractors, and pros through superior marketing, product experience, and service. Launch High‑Performance Innovation: Continue to expand Trex’s leadership in material science and performance through products that represent the next generation of outdoor living solutions. Optimize Channels for Growth: Strengthen distribution effectiveness and ensure Trex products are readily available across retail, dealer, and pro channels to drive above-market growth. Lower the Cost of Railing: Drive cost efficiencies and design advancements to enhance margin structure and accelerate share gains in this fast‑growing product line. Growth Enablement: Invest in the foundation – culture, technology, and talent – that powers sustainable growth. We’re strengthening our organization by aligning around accountability, upskilling for digital and commercial excellence, and fostering an innovation‑driven culture that empowers teams to act with speed and discipline. “As I noted last quarter, driving growth through innovation remains a key priority. Our recently launched PVC decking product is performing well, leading us to expand into geographies beyond our initial West Coast rollout. The fire-rated product category represents an attractive market opportunity, and we are committed to competing aggressively to capture share in this and other potential growth areas through unmatched product innovation.
“Our refined incentive and marketing programs have been very well received by our channel partners further strengthening these valued relationships. We also are excited about the next phase of our consumer- and pro-focused marketing campaign centered around our “Performance-Engineered for Your Life Outdoors™” brand platform, which launched in May 2025. As we move forward, the Trex brand and our value proposition will become increasingly visible and strategically positioned, with the impact of these programs further enhanced by our investment in digital tools. In the first quarter our digital metrics showed consistent growth across key leading indicators, with high‑intent behaviors meaningfully outpacing overall traffic, signaling more deliberate consumer engagement,” noted Mr. Zambanini.
Q1 2026 Financial Summary
All financial results comparisons made are against the prior-year period unless otherwise noted:
Net sales were $343 million compared to $340 million, an increase of 1%, due to positive price/mix in the quarter.
Gross profit was $139 million with gross margin of 40.5%, compared to gross profit of $138 million and gross margin of 40.5%. There were no adjustments to this year’s gross profit while last year’s adjusted gross profit, which excluded railing conversion costs of approximately $4 million, was $142 million. A favorable mix of higher margin premium decking boards and margin improvement from continued operational excellence programs helped to offset a $4M increase in depreciation expenses related to our Little Rock production facility. The Company experienced no impact on gross margins related to increased oil prices during the quarter.
Selling, general, and administrative expenses were $56 million, representing 16.2% of net sales, compared to $56 million, or 16.5% of net sales in the prior year. Excluding digital transformation costs and Arkansas facility start-up expenses of $1.2 million and $1.5 million, SG&A was $54 million and $55 million, respectively. The Company continued to increase its investment in branding and marketing programs to drive future growth. Other expenses, including personnel and healthcare related expenses, were lower than expected due to cost containment and timing.
Net income was $61 million, or $0.58 per diluted share, compared to net income of $60 million, or $0.56 per diluted share in the prior year. Adjusted net income was $62 million, with adjusted diluted EPS of $0.59, compared to adjusted net income of $64 million with adjusted diluted earnings per share of $0.60.
Adjusted EBITDA of $103 million compared favorably to an adjusted EBITDA of $101 million in the prior year.
Free cash flow was ($143) million, a 39% improvement from last year, reflecting effective management of working capital and lower capital expenditures as we finish the new Little Rock facility.
During the quarter, the Company authorized significant share repurchase programs including a $100 million ASR program and $50 million of additional discretionary repurchases as part of an existing share repurchase authorization. The Company intends to complete the $150 million repurchase program in the second quarter. Share repurchases remain a key aspect of the Company’s capital allocation strategy.
New Developments & Recognitions
Launched Refuge™ Decking, an ignition resistant PVC decking line, across select markets in the West, New England and Mid-Atlantic. Named Green Builder Media’s Sustainable Brand leader in the decking category for the 16th consecutive year. Trex® Refuge™ was also selected by Green Builder editors as one of the most sustainable products of the year for 2026. Named One of America’s Most Trustworthy Companies. Trex was named to Newsweek’s list of the Most Trustworthy Companies in America 2026. Named America’s Most Trusted® Outdoor Decking for sixth consecutive year, according to a nationwide study by Lifestory Research. Trex Innovation Earned Top Industry and Global Design Honors. Trex Select® Decking and Signature® X-Series™ Railing recognized for performance and versatility. Summary & Outlook
“We continue to anticipate the overall R&R market to be down to flat this year and are closely monitoring any impact on consumer confidence from the ongoing conflict in the Middle East. First quarter financial results were consistent with the cadence we anticipated for the year, with the typical seasonality of the business reflected in both revenue and margins. Additionally, the first quarter reflects continued execution on our commitment to returning capital to shareholders,” said Prith Gandhi, Senior Vice President and Chief Financial Officer.
Based on current visibility, the Company is reaffirming its full year 2026 guidance, shown in the table below, with revenue ranging from $1.185 billion to $1.23 billion and adjusted EBITDA ranging from $315 million to $340 million. The Company also provided second quarter revenue guidance in the range of $388 to $403 million.
The Company expects robust free cash flow generation this year, supported by a meaningful reduction in capital expenditures relative to 2025, as the peak investment phase of the Arkansas campus build-out transitions to an operational phase. Capital expenditure guidance for 2026 is $100 million to $120 million, down from $224 million in 2025. As construction winds down, The Company expects another meaningful increase in free cash flow in 2027 and beyond as capital expenditures return to maintenance levels of roughly 5 to 6% of revenue.
In addition to the execution of its $150 million share repurchase program, the Board of Directors authorized a 10 million share increase to the Company’s existing share repurchase program, bringing the total potential shares available for repurchase to approximately 13% of Trex’s outstanding shares at the end of the quarter.
Full Year 2026 Guidance Low
High
Net sales $1.185B
$1.230B
Adjusted EBITDA $315M
$340M
Depreciation and amortization ~$85M
SG&A ~18% of net sales
Interest expense $8M
$10M
Effective tax rate 25.5%
27.0%
CapEx $100M
$120M
Q2 2026 Guidance
Low
High
Net sales $388M
$403M
Conference Call & Webcast Information
Trex will hold a conference call to discuss its first quarter 2026 results on Thursday, May 7, 2026, at 8:00 a.m. ET. To participate on the day of the call, dial 1-844-792-3734, or internationally 1-412-317-5126, approximately ten minutes before the call, and tell the operator you wish to join the Trex Company Conference Call.
A live webcast of the conference call will be available in the Investor Relations section of the Trex Company website at 1Q26 Earnings Webcast. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available within 24 hours of the call on the Trex website. The audio replay will be available for 30 days.
Use of Non-GAAP Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). To supplement our consolidated financial statements reported on a GAAP basis, we provide the following non-GAAP financial measures, adjusted gross profit, adjusted net income, adjusted diluted earnings per share, earnings before interest, income taxes, depreciation and amortization (EBITDA), adjusted EBITDA and free cash flow. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors’ ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP and are not meant to be considered superior to or a substitute for our GAAP results. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of these non-GAAP financial measures to GAAP information are included below. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Non-GAAP Reconciliation Tables
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Three Months Ended
March 31,
Trex Company, Inc. 2026
2025
($ in thousands)
Gross profit $
139,022
$
137,731
Railing conversion -
3,826
Adjusted gross profit $
139,022
$
141,557
Reconciliation of GAAP Net Income to Adjusted Net Income
Three Months Ended
March 31,
Trex Company, Inc. 2026
2025
($ in thousands) Net Income $
61,403
$
60,434
Railing conversion -
3,826
Digital transformation 1,014
452
Arkansas start up 226
1,085
Income tax effect* (327
)
(1,383
)
Adjusted Net Income $
62,316
$
64,414
Diluted earnings per share $
0.58
$
0.56
Adjusted diluted earnings per share $
0.59
$
0.60
* Income tax effect calculated using the effective tax rate for the applicable period
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
Three Months Ended
March 31,
Trex Company, Inc. 2026
2025
($ in thousands) Net Income $
61,403
$
60,434
Interest expense, net -
76
Income tax expense 22,102
21,153
Depreciation and amortization 18,371
14,249
EBITDA $
101,876
$
95,912
Railing conversion -
3,826
Digital transformation 1,014
452
Arkansas start up 226
1,085
Adjusted EBITDA $
103,116
$
101,275
Reconciliation of GAAP Cash from Operations to Free Cash Flow
Three Months Ended
March 31,
Trex Company, Inc. 2026
2025
($ in thousands) Net cash (used in) operating activities $
(118,425
)
$
(154,013
)
Expenditures for property, plant, and equipment (23,105
)
(79,486
)
Purchased intangibles (1,852
)
(635
)
Free cash flow $
(143,382
)
$
(234,134
)
GAAP Financial Statement Tables
TREX COMPANY, INC.
Condensed Consolidated Statements of Comprehensive Income
(In thousands, except share and per share data)
Three Months Ended
March 31,
2026
2025
(Unaudited)
Net sales $
343,403
$
339,993
Cost of sales 204,381
202,262
Gross profit 139,022
137,731
Selling, general and administrative expenses 55,517
56,068
Income from operations 83,505
81,663
Interest expense, net -
76
Income before income taxes 83,505
81,587
Provision for income taxes 22,102
21,153
Net income $
61,403
$
60,434
Basic earnings per common share 0.58
$
0.56
Basic weighted average common shares outstanding 105,058,351
107,180,665
Diluted earnings per common share 0.58
$
0.56
Diluted weighted average common shares outstanding 105,132,511
107,284,084
Comprehensive income $
61,403
$
60,434
TREX COMPANY, INC. Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) March 31,
December 31,
2026
2025
ASSETS Current assets: Cash and cash equivalents $
4,492
$
3,807
Accounts receivable, net 326,928
48,091
Inventories 229,580
238,665
Prepaid expenses and other assets 19,031
19,843
Total current assets 580,031
310,406
Property, plant and equipment, net 1,054,824
1,049,733
Operating lease assets 51,404
52,632
Goodwill and other intangible assets, net 32,906
31,529
Other assets 10,649
9,141
Total assets $
1,729,814
$
1,453,441
LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $
65,941
$
34,759
Accrued expenses and other liabilities 112,739
77,030
Accrued warranty 5,221
5,416
Line of credit 382,500
133,500
Total current liabilities 566,401
250,705
Deferred income taxes 85,833
85,833
Operating lease liabilities 40,138
41,755
Non-current accrued warranty 25,121
24,324
Other long-term liabilities 16,560
16,560
Total liabilities
734,053
419,177
Stockhholder's equity:
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding
—
—
Common stock, $0.01 par value, 360,000,000 shares authorized; 141,280,582 and 141,208,139 shares issued and 103,898,577 and 105,737,266 shares outstanding at March 31, 2026 and December 31, 2025, respectively
1,413
1,412
Additional paid-in capital
136,183
155,316
Retained earnings
1,851,250
1,789,847
Treasury stock, at cost, 37,382,005 and 35,470,873 shares at March 31, 2026 and December 31, 2025, respectively
(993,085
)
(912,311
)
Total stockholders’ equity
995,761
1,034,264
Total liabilities and stockholders’ equity
$
1,729,814
$
1,453,441
TREX COMPANY, INC. Condensed Consolidated Statements of Cash Flows (In thousands) Three Months Ended
March 31,
2026
2025
(unaudited)
Operating Activities Net income $
61,403
$
60,434
Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 18,371
14,249
Stock-based compensation 2,634
2,313
(Gain) on disposal of property, plant and equipment (45
)
(57
)
Other non-cash adjustments 117
117
Changes in operating assets and liabilities: Accounts receivable (278,838
)
(302,708
)
Inventories 9,086
30,863
Prepaid expenses and other assets (523
)
2,161
Accounts payable 31,300
4,187
Accrued expenses and other liabilities 15,963
15,278
Income taxes receivable/payable 22,107
19,150
Net cash used in operating activities (118,425
)
(154,013
)
Investing Activities Expenditures for property, plant and equipment (23,105
)
(79,486
)
Purchased intangibles (1,852
)
(635
)
Proceeds from sales of property, plant and equipment 45
156
Net cash used in investing activities (24,912
)
(79,965
)
Financing Activities Borrowings under line of credit 314,000
257,047
Principal payments under line of credit (65,000
)
(15,700
)
Repurchases of common stock (82,826
)
(4,008
)
Unsettled accelerated share repurchase (20,000
)
-
Proceeds from employee stock purchase and option plans 286
300
Financing costs (2,438
)
10
Net cash provided by financing activities 144,022
237,649
Net increase in cash and cash equivalents 685
3,671
Cash and cash equivalents at beginning of period 3,807
1,292
Cash and cash equivalents at end of period $
4,492
$
4,963
About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. For more information, visit Trex.com.
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Forward-Looking Statements
The statements in this press release regarding the Company’s expected future performance and condition constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company’s actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company’s current and newly developed products, including fire-rated and PVC decking products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company’s business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the availability and cost of third-party transportation services for the Company’s products and raw materials; the Company’s ability to obtain raw materials, including scrap polyethylene, wood fiber, and other materials used in making our products, at acceptable prices; increasing inflation, oil prices, and tariffs in the macro-economic environment; the Company’s ability to maintain product quality and product performance at an acceptable cost; the Company’s ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts, including the ongoing conflict in the Middle East and its potential effect on consumer confidence; risks associated with the Company’s digital transformation initiatives and related costs; risks associated with the startup, construction, and operational transition of the Company’s Arkansas facility; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company’s actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Trex (TREX - Free Report) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.39%. A quarter ago, it was expected that this maker of fencing and decking products would post a loss of $0.01 per share when it actually produced earnings of $0.04, delivering a surprise of +500%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Trex, which belongs to the Zacks Building Products - Wood industry, posted revenues of $343.4 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.06%. This compares to year-ago revenues of $339.99 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Trex shares have added about 13.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Trex?While Trex has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Trex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $398.12 million in revenues for the coming quarter and $1.63 on $1.21 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Construction sector, Fluor (FLR - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 8.
This engineering, construction and operations company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -9.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Fluor's revenues are expected to be $3.8 billion, down 4.6% from the year-ago quarter.
On May 11, 2026, Montanaro Asset Management Ltd disclosed in a U.S. Securities and Exchange Commission filing that it sold its entire stake in Trex Company (TREX +0.13%), an estimated $12.17 million transaction based on the quarterly average price.
What happenedAccording to a U.S. Securities and Exchange Commission (SEC) filing dated May 11, 2026, Montanaro Asset Management Ltd reported selling its entire holding of 302,462 Trex Company shares. The estimated transaction value was $12.17 million, based on the average unadjusted closing price for the first quarter of 2026. The fund exited the position completely, with no Trex Company shares or value remaining at quarter’s end.
What else to knowMontanaro Asset Management Ltd fully exited Trex Company; the position now represents none of the 13F AUM.
Top holdings after the filing:
NASDAQ:NVMI: $20.90 million (6.25% of AUM)NASDAQ:TECH: $17.82 million (5.33% of AUM)NASDAQ:BCPC: $16.73 million (5.00% of AUM)NYSE:HLI: $14.11 million (4.22% of AUM)NASDAQ:BSY: $14.06 million (4.20% of AUM)As of May 10, 2026, Trex Company shares were priced at $40.20, down 31.05% over the past year, underperforming the S&P 500 by 61.68 percentage points.
Company overviewMetricValuePrice (as of market close May 8, 2026)$40.20Market Capitalization$4.13 billionRevenue (TTM)$1.18 billionNet Income (TTM)$191.38 millionCompany snapshotProduces composite decking, railing systems, fencing, and outdoor living products for both residential and commercial applications.Generates revenue primarily through product sales to wholesale distributors, retail lumber dealers, and major home improvement retailers, supported by licensing agreements for branded accessories.Serves homeowners, contractors, builders, and commercial clients across the United States, with a focus on the residential remodeling and new construction markets.Trex Company is a leading manufacturer of wood-alternative decking and outdoor living solutions, operating at scale with over $1.17 billion in trailing twelve-month revenue. The company leverages a strong brand and extensive distribution network to maintain a competitive position in the construction and home improvement sector. Its focus on innovation and sustainability underpins its market leadership in composite decking products.
What this transaction means for investorsMontanaro Asset Management, a London-based investment firm, recently disclosed selling approximately $12.2 million of Trex stock during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
First, Trex shares have endured a steady decline over the last few years. Since the start of 2024, Trex shares have fallen by about 52%, for a compound annual growth rate of -26.9%. The benchmark S&P 500 index, meanwhile, has generated a total return of 60% over the same period, with a CAGR of 21.9%.In other words, Trex shares have severely underperformed the market during this period.
The company faces several notable headwinds. The overall repair and remodel market for new homes remains stagnant, as consumers continue to face higher costs for necessities like food and energy. In addition, interest rates remain above the average levels recorded over the last 10 years, leading many homeowners to be unwilling to take on new projects to improve their home’s value.
All that said, value-minded investors might see opportunity in Trex shares. The company’s stock currently trades at a price-to-sales (P/S) ratio of 3.6x. That’s well below its 10-year average of 6.7x.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Houlihan Lokey and Trex. The Motley Fool recommends Bentley Systems. The Motley Fool has a disclosure policy.
On May 15, 2026, Kanen Wealth Management LLC disclosed in an SEC filing that it sold out of Trex Company (TREX +0.13%), unloading 250,000 shares in a trade estimated at $10.06 million based on the quarterly average price.
What happenedAccording to an SEC filing dated May 15, 2026, Kanen Wealth Management LLC sold its entire 250,000-share stake in Trex Company during the first quarter. The estimated transaction value is $10.06 million, based on average share prices within the quarter. The quarter-end position value decreased by $8.83 million, a figure that includes both the sale and movements in Trex Company’s stock price.
What else to knowThis was a complete sale; Trex Company now represents 0% of the fund’s 13F reportable assets
Top holdings after the filing:
NYSE:COMP: $46.85 million (16.8% of AUM)NASDAQ:ALLT: $30.99 million (11.1% of AUM)NYSE:BNED: $30.23 million (10.9% of AUM)NASDAQ:POWW: $23.50 million (8.5% of AUM)NASDAQ:INSE: $19.12 million (6.9% of AUM)As of May 15, 2026, shares were priced at $37.44, down 37.6% over the past year, underperforming the S&P 500 by 62.8 percentage points
Trex Company reported trailing twelve-month revenue of $1.17 billion and net income of $190.41 million
The fund reported 36 positions and $278.05 million in 13F assets as of March 31, 2026
Company overviewMetricValuePrice (as of market close May 15, 2026)$37.44Market capitalization$3.89 billionRevenue (TTM)$1.18 billionNet income (TTM)$191.38 millionCompany snapshotTrex Company manufactures and distributes composite decking, railing systems, fencing, and outdoor living accessories, with key product lines including Trex Transcend, Trex Select, and Trex Enhance.The company generates revenue primarily through the sale of branded outdoor building products to residential and commercial markets, leveraging a combination of direct sales, wholesale distributors, retail lumber dealers, and major home improvement retailers.Primary customers include homeowners, builders, contractors, and commercial clients seeking durable, low-maintenance outdoor solutions in the United States.Trex Company is a leading provider of composite decking and outdoor living products, serving both residential and commercial markets across the United States. The company leverages a multi-channel distribution strategy and strong brand recognition to maintain a competitive position in the construction materials industry. Its focus on innovation and licensing partnerships supports continued growth and product diversification.
What this transaction means for investorsKanen Wealth Management, a Florida-based investment advisory firm, recently disclosed the sale of approximately 250,000 shares of Trex stock, valued at approximately $10.1 million, during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
To begin, Trex is a home improvement stock within the industrials sector. Trex stock tends to be highly sensitive to the health of the real estate market, since many of its products fall into the repair-and-remodel market for existing homes.
Consequently, Trex stock has suffered some ups and downs over the last few years. Overall, the stock has declined by 32% over the last three years, lagging the broader market.
However, in its most recent earnings report, the company surpassed expectations, reporting quarterly revenue of $343 million. In addition, adjusted earnings per share (EPS) were $0.59/share, topping most forecasts.
Finally, the stock is trading at a price-to-sales (P/S) ratio of 3.5x, well below its 10-year average of 6.7x. This could make the stock appealing to investors seeking some exposure to the sector.
WINCHESTER, Va., May 19, 2026 (GLOBE NEWSWIRE) -- As Memorial Day marks the unofficial start of summer, many homeowners are heading outside – but not always to relax. According to a new national survey conducted by Atomik Research, 78% of homeowners with wood decks say they regret their choice of material, pointing to ongoing maintenance, durability and appearance as their biggest frustrations. The findings underscore changing homeowner priorities, with performance, longevity and low upkeep increasingly driving material decisions.
“Your deck should be a place to unwind, not another weekend chore,” said Jodi Lee, senior vice president of marketing for Trex Company, the world’s largest manufacturer of wood-alternative decking and railing. “Homeowners are rethinking what they want from their outdoor spaces and gravitating toward high-performance materials that deliver lasting beauty without constant maintenance.”
Backyard Retreat or High-Maintenance Hassle?
Nearly all survey respondents (96%) say their deck plays an important role in how they relax, entertain and spend time at home, making material choice more important than ever. For many wood deck owners, the reality doesn’t live up to expectations.
It’s all about appearances: Weathering (56%), staining or painting (45%), and fading or discoloration (44%) rank among the most common pain points for homeowners with wood decks. More than half (55%) of wood deck owners say they avoid using their decks due to maintenance needs, repairs or worn appearance. Time and money: Wood deck owners are nearly 60% more likely than composite owners to report “much more than expected” maintenance after choosing wood. 43% of wood deck owners spend more than 10 hours per year on maintenance.76% spend at least $100 annually to keep their decks in shape.
Composite vs. Wood: Less Maintenance, More Enjoyment
The survey found that homeowners with decks made from composite material report fewer concerns overall compared to their wood deck neighbors. Composite owners are nearly four times more likely to say they experience “no issues at all” (17% vs. just 4% of wood deck owners) and nearly twice as likely to say they have “no regret” about their material choice than wood deck owners.
When it comes to longevity, 70% of composite deck owners say their deck has maintained its appearance over time vs. a significantly lower 50% of wood owners. In fact, wood deck owners are twice as likely to say their deck has not maintained its appearance over time compared with composite owners (34% vs. 17%).
“Homeowners invest in their decks to enhance how they live at home, not to take on another ongoing project,” noted Lee. “When upkeep starts to outweigh enjoyment, it’s clear why so many are turning to high-performance alternatives that deliver lasting beauty with far less effort.”
Composite decking, like Trex, delivers long-term performance and requires minimal upkeep. Designed for maximum durability, it resists mold, fading and staining* and won’t rot, crack or warp like wood. It’s also insect-resistant and splinter-free, making it safer and more comfortable for families with kids and pets.
With composite decking homeowners never need to worry about sanding, staining or sealing. An occasional soap-and-water cleaning* maintains performance and aesthetics for years to come. Trex composite decking, for example, is backed by up to 50-year limited warranties.
It’s no surprise then that composite decking owners report higher satisfaction and confidence in long-term performance than wood deck owners with 82% saying they are confident their deck will last 15-20 years with minimal upkeep. Conversely, about 40% of wood owners report having little to no confidence they’ll have a functional/attractive deck down the line.
Desire for Worry-Free Outdoor Living Drives Deck Do-overs
With 86% of deck owners reporting they use their decks daily or a few times a week during peak season, material choice that delivers lasting performance is key. Of the survey respondents actively considering adding a deck to their homes, 74% cited durability as the most important factor in choosing decking material. And when asked what they would choose if building a new deck today, nearly four in 10 (39%) wood deck owners said they would opt for composite, citing performance and aesthetics as top considerations.
“At the end of the day, a deck should give something back to the homeowner – more time, more comfort and more reasons to gather,” added Lee. “As expectations for outdoor living continue to evolve, we see a clear move toward solutions that make it easier to create spaces people truly enjoy without compromise.”
Trex offers the industry’s largest selection of wood-alternative decking and railing designs sold through home centers and specialty retailers nationwide. Through strategic licensing agreements, the company also offers a comprehensive outdoor living portfolio that includes lighting, fencing, outdoor kitchen components, pergolas, spiral stairs, lattice, privacy screens, cornhole and outdoor furniture – all marketed under the Trex brand.
For more information, visit Trex.com or visit Trex.com/Shop to order free decking samples.
SOURCE: 2026 Wood Regret Survey, Atomik Research
*For details, visit trex.com/warranty and trex.com/care
About the Survey
The 2026 Wood Regret Survey was commissioned by Trex Company and conducted by Atomik Research, an independent market research firm. An online survey, fielded between March 26-31, 2026, was completed by 2,000 single-family homeowners across the U.S., including 750 with a wood deck, 750 with a composite deck, and 500 who do not currently have a deck but are considering adding one. The margin of error for the overall sample is +/- 2 percentage points with a confidence level of 95 percent.
At a Glance Survey Highlights
78% of wood deck owners regret their material choice, citing maintenance, durability and appearance as top concernsDurability drives decisions: 74% say durability is the most important factor Maintenance is a major burden: 43% spend more than 10 hours per year on upkeep76% spend $100 or more annually maintaining their deck Weathering and wear are widespread issues: 56% cite weathering as a top pain point45% point to staining or painting44% report fading or discoloration Composite decking delivers fewer headaches: 17% report no common decking pain points (vs. 4% of wood owners)70% say their deck maintains its appearance over time (vs. 50% of wood owners) Maintenance impacts enjoyment: 55% of wood deck owners avoid using their deck at least occasionally due to upkeep needs Composite owners report higher satisfaction and confidence: 77% are satisfied with performance (vs. 65% of wood owners)82% are confident their deck will last 15-20 years with minimal maintenance (vs. 43% of wood owners) Homeowners are rethinking material choices: 39% of wood deck owners would choose composite over wood if building today (based on performance and aesthetics) About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and residential railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
On May 19, 2026, Trex Co Inc (TREX) shares fell 5.1% today, trading at $36.24. The stock has experienced significant volatility, with a 52-week range of $29.77
Trex Company remains fundamentally solid but faces macroeconomic headwinds and a soft housing market, justifying a continued hold rating. Q1 2026 sales showed a modest 1% recovery to $343.4M, with resilient demand and improved operating margin to 24.3% despite inflationary pressures. TREX's high-margin, low-cost business model leverages recycled materials, supporting pricing power and defensive demand even as inflation and housing softness persist.
WINCHESTER, Va.--(BUSINESS WIRE)--When you want the absolute best for your home, there’s one name that instantly comes to mind – Martha Stewart – and when she wanted the absolute best for her home, there was only one name that came to mind – Trex®. This match made in home-design heaven has evolved into a noteworthy collaboration aimed at bringing inspiration, expert insights and empowerment to those looking to elevate their outdoor spaces.
“I was drawn to Trex because they are the best at what they do. Their attention to detail, design versatility and wide range of products make it easy to create outdoor spaces with the warmth of wood and far less upkeep."
Share “Partnering with Martha Stewart feels incredibly natural,” said Jodi Lee, senior vice president of marketing for Trex Company. “She is the trusted authority on all things home, and Trex is the most trusted authority in outdoor living. Together, we aim to give homeowners the confidence to create beautiful outdoor spaces with the right guidance and products.”
The relationship between Trex and Stewart began when the lifestyle guru selected Trex decking, railing and other outdoor living products to makeover an outdoor space at her home in Bedford, New York. Her firsthand experience with the brand soon evolved into a brand partnership agreement centered on helping homeowners achieve their dream outdoor spaces.
“I was drawn to Trex because they are the best at what they do,” said Stewart. “Their attention to detail, design versatility and wide range of products make it easy to create outdoor spaces with the warmth of wood and far less upkeep. The decking and railing are elegant, durable and thoughtfully designed, and I’ve had a great experience working with the talented Trex team and TrexPro contractors. I also value that Trex prioritizes sustainability by using recycled and reclaimed materials, proving homeowners don't have to sacrifice beauty, quality or performance to make a responsible choice.”
The Bedford project will provide a real-world look at the deck planning journey, illustrating how Trex helps homeowners create refined, functional and enduring outdoor spaces. Drawing on her signature storytelling style and hands-on approach, Stewart will share the insights behind her own decision-making process while collaborating with Trex on educational content covering everything from design inspiration and product selection to working with contractors.
“Stewart’s wisdom, wit and stamp of approval resonate across generations, and she is known for only aligning herself with brands and products she truly believes in,” added Lee. “She has earned the trust of homeowners by demonstrating that exceptional design doesn't require compromise, and her appreciation for craftsmanship, longevity and thoughtful living mirrors the values that have defined our brand for decades. Her unique ability to blend aspirational design with practical decision-making makes her an ideal brand partner and ambassador for Trex.”
Currently under construction, the outdoor space at Stewart’s Bedford property will showcase a mix of Trex products, including Trex Transcend® Lineage® decking and Trex Select™ aluminum railing, along with a custom Trex® Pergola and Trex® Outdoor Deck Lighting – all curated by Stewart herself to balance aesthetics, performance and sustainability.
“Working alongside Martha throughout the selection process was an incredible experience because she was deeply involved in every detail and extremely intentional about balancing elevated aesthetics with sustainability and long-term performance,” said Mike Onderko, senior director of product management for Trex. “She has an exceptional eye for design and a clear vision for how outdoor spaces should look and feel, which made Trex a natural fit.”
Design enthusiasts and fans of Stewart and Trex are encouraged to follow the project throughout the summer for behind-the-scenes insights, design inspiration and expert guidance. Updates and exclusive content will be available on Trex.com, Trex’s social channels and Stewart’s social platforms.
Design enthusiasts and fans of Stewart and Trex are encouraged to follow @trexcompany on Instagram and visit Trex.com for project updates, design inspiration, expert advice and information about Trex products.
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Trex x Martha Stewart Imagery
About Trex Company, Inc.
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the wood-alternative decking category. Today, the company is the world’s #1 brand of premium, sustainable, wood-alternative decking and residential railing, and a leader in high-performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, deck lighting, outdoor kitchen components, fencing, pergolas, spiral stairs, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand.
Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026) and included in Newsweek’s list of the Most Trustworthy Companies in America 2026. Additionally, USA Today included Trex on its 2026 list of “America’s Climate Leaders.” The company has also been ranked on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, highlighted as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for 16 consecutive years. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
^2021-2026 DISCLAIMER: Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on the experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
About Martha Stewart
Martha Stewart is the founder of the first multi-channel lifestyle company, Martha Stewart Living Omnimedia, an entrepreneur, bestselling author of 102 lifestyle books, and Emmy Award-winning television show host. Reaching more than 100 million devoted fans monthly through multi-media platforms and products for the home, sold through Amazon.com and The World of Martha Stewart and an extensive retail network, Martha is the “go-to” authority on the encompassing topic of Living and Celebrating your best life. She and her talented staff provide trusted, timely, and useful information on all aspects of everyday living: cooking, entertaining, gardening, home renovating, collecting, organizing, crafting, healthy living, holidays, weddings, and pet care, across many media formats.
About Marquee Brands
Marquee Brands is the premier accelerator of timeless brands, unlocking value and building global influence. With a focus on driving growth and building sustainable brand equity, we partner with best-in-class manufacturers, operators, retailers, and distributors to scale brands across markets and channels. Marquee Brands’ global portfolio spans four distinct platforms: Luxury, Home & Culinary, Fashion & Lifestyle and Active & Outdoor. The portfolio of brands includes Martha Stewart, Laura Ashley, Sur La Table, Emeril Lagasse, America’s Test Kitchen, Roberto Cavalli*, BCBGMAXAZRIA, BCBG, Ben Sherman, Bruno Magli, Anti Social Social Club, Totes, Isotoner, Destination Maternity, Motherhood, A Pea in the Pod, Stance, Dakine and Body Glove. For more information visit, www.marqueebrands.com. *Pending closing in Q2 2026. http://www.marqueebrands.com/
Commercial rights holder charts expansion into Bangladesh and UAE after completing NASDAQ-governed merger March 23, 2026 07:05 ET | Source: Flash Sport & Media Inc
COLOMBO, Sri Lanka, March 23, 2026 (GLOBE NEWSWIRE) -- Innovative Production Group FZ, LLC (“IPG”) has completed its strategic all-stock merger with Flash Sports & Media, Inc. (“Flash”) bringing its portfolio of T20 league commercial rights — including the Lanka Premier League (“LPL”) — to the NASDAQ-listed platform UGRO (NASDAQ: UGRO). The move marks a significant moment for IPG and the leagues it manages, positioning them within a publicly governed structure built for scale.
Backed by this new institutional structure, the new entity has outlined expansion plans into Bangladesh and the United Arab Emirates, extending its footprint across high-growth cricket markets.
For the LPL, as well as the Malaysia and Zimbabwe T20 leagues, the transition signals the start of a more structured and growth-driven phase. While the LPL remains intellectual property owned by Sri Lanka Cricket, IPG continues to hold exclusive commercial and media rights — now backed by institutional capital, enhanced governance standards, and long-term expansion planning.
Anil Mohan, Founder & Chairman of IPG Global, said: “The integration into a publicly governed structure strengthens our ability to scale responsibly across emerging markets. With enhanced transparency, capital access, and governance standards, we are positioned to grow franchise value while maintaining long-term commercial discipline.”
The combined platform is focused on long-term asset appreciation, centralizing sponsorship revenue across leagues, upgrading broadcast production to 4K standards, and creating predictable recurring revenue streams. The aim is to evolve standalone tournaments into an integrated, multi-market cricket enterprise spanning South Asia and other emerging territories.
Eric Sherb, Chief Financial Officer, Flash Sports & Media, added: “The public-market structure enables phased capital deployment into league infrastructure while maintaining strict ROI discipline. Our focus will be on strengthening long-term commercial development and building recurring revenue streams across the portfolio.”
Bradley Nattrass, Chief Executive Officer, Flash Sports & Media shares: “We believe this combination accelerates our ability to execute across multiple cricket economies simultaneously. With centralized commercial control and aligned franchise incentives, we intend to drive deeper sponsor integration, stronger broadcast partnerships, and greater fan engagement across markets. Our focus now is on operational execution, scaling the platform with speed and precision, and long-term shareholder value creation.”
Since entering the franchise cricket space, IPG has played a key role in building commercial structures around emerging-market leagues. The merger consolidates IPG’s league management, media monetization, and commercial operations within a capital-backed framework designed for long-term asset growth rather than short tournament cycles.
Forward-Looking Statements
This press release contains forward-looking statements including statements regarding the expected benefits of the merger, the development and commercialization of cricket league assets, anticipated revenue opportunities, and potential expansion into additional markets. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “may,” “will,” “could,” “seek,” “estimate,” or similar expressions.
These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks include, among others, the ability to successfully integrate operations following the merger, execute growth and expansion initiatives, obtain necessary regulatory approvals, secure sponsorship, media, and commercial partnerships, and general economic, market, and industry conditions.
Forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update or revise any such statements except as required by law.
About urban-gro, Inc.
Following its recent combination with Flash, urban-gro, Inc. (“ubran-gro”) is a diversified sports, media, and experiential marketing platform focused on the creation, production, and monetization of live events, original content, and branded fan experiences. The company uses across multiple sports and entertainment verticals, using proprietary intellectual property, strategic partnerships, and experiential activations to engage audiences and deliver value for brands, sponsors, and media partners. Flash integrates content creation, event execution, and media distribution to build scalable platforms within the global sports and entertainment ecosystem. For more information, visit https://flashsportsandmedia.com.
About Lanka Premier League
The Lanka Premier League has established itself as one of the region’s most dynamic and widely followed T20 tournaments, bringing together top Sri Lankan cricketers and leading international stars in an electrifying showcase of the game. The league is owned and operated by the IPG Group, its official rights holder. The sixth edition of the LPL was staged from December 1 to December 23, 2025, across three premier venues – Colombo, Dambulla, and Kandy. Fans were able to experience 24 high-octane matches over 24 days, featuring marquee overseas players alongside Sri Lankan cricketing stalwarts. The league comprising five competing franchises will vie for the coveted trophy this edition.
About IPG
Innovative Production Group FZ, LLC (“IPG”), founded by Anil Mohan Sankhdhar, and now a subsidiary of Flash, is a global leader in sports marketing, event management, sponsorship rights, and production, with deep expertise in international cricket properties and sports media. As the rights holder for major cricket leagues, IPG has consistently delivered world-class sporting experiences, pioneering innovations in fan engagement, ground sponsorships, and league management. With its strong global footprint, the group continues to shape and elevate the sports and entertainment landscape.
COLOMBO, Sri Lanka, May 04, 2026 (GLOBE NEWSWIRE) -- Gallant Sports and Media LLC today announced its ownership of the Galle Gallants franchise for Lanka Premier League ("LPL") Season 6, scheduled for July 10 – August 5, 2026. Galle Gallants will participate in LPL Season 6 — executed via the Innovative Production Group FZ, LLC ("IPG") platform under urban-gro, Inc. (Nasdaq: UGRO), operating as Flash Sports & Media, Inc. — positioning the franchise within a record-scale Season 6 featuring a 500–600 player registration pool, marquee global talent, and a projected USD 25–30M local economic impact. Gallant is led by Owner and Principal Kiran Mantripragada, with corporate formation and ownership documentation on file with the league. Veteran international coach Pubudu Dassanayake has been appointed Head Coach, and the franchise is in active discussions with Sri Lankan marquees Dasun Shanaka as captain and Eshan Malinga. Gallants roped in Roy Silva, Sri Lankan-born American cricketer as their strategic partner and COO to enhance local participation and overall strategy. Sharath Sriramoju will lead the franchise’s marketing and strategic initiatives as a CSO.
Key Franchise Facts:
Ownership Entity: Gallant Sports and Media LLCOwner / Principal: Kiran Mantripragada, Uday Kiran NamballaHead Coach: Pubudu DassanayakeSpin Coach: Dinuka HettiarachchiFast Bowling Coach: Chamila GamageSri Lankan Marquees in Discussion: Dasun Shanaka, Eshan MalingaLeague Operator: Innovative Production Group FZ, LLC (IPG), via urban-gro, Inc. (Nasdaq: UGRO) / Flash Sports & Media, Inc.Tournament Window: July 10 – August 5, 2026 A Franchise Within a Record-Scale Season 6
LPL Season 6 — operated through the IPG platform under urban-gro / Flash Sports & Media — is targeting its largest-ever player pool of 500–600 athletes, the appointment of T20 legend Chris Gayle as Brand Ambassador, and a USD 25–30M projected local ecosystem impact. The Galle Gallants are positioned to participate fully in this expanded commercial, broadcast, and competitive environment.
Ownership and Coaching Leadership
Gallant Sports and Media LLC is a duly registered limited liability company formed to acquire and operate the Galle Gallants. Owner and Principal Kiran Mantripragada leads strategy across cricketing operations, commercial development, and media partnerships. The Company's LLC registration and Owner identification are on file and have been provided to the league as part of franchise onboarding.
Head Coach Pubudu Dassanayake, a former Sri Lankan international and national head coach for Canada, Nepal, and the United States — brings a track record of building competitive T20 squads and developing emerging talent under tournament pressure.
Squad Strategy: Local Anchors, Global Marquees
Galle Gallants is in active discussions with Dasun Shanaka, former Sri Lanka T20I captain and proven match-winning all-rounder, and Ishan Malinga, one of Sri Lanka's leading top bowlers, to anchor the franchise's local identity. Around them, the Company will pursue international marquee talent at the Season 6 auction. Targets under consideration include David Warner, Glenn Maxwell, Jos Buttler, Faf du Plessis, Kane Williamson, Andre Russell, Babar Azam, Shaheen Shah Afridi, Rashid Khan, Shakib Al Hasan, and Ravichandran Ashwin, among others.
Final acquisition pricing per player slot is to be determined and will be confirmed in connection with the LPL Season 6 auction. Player participation is subject to final registration, contractual arrangements, applicable governing body and board approvals, and NOCs.
Owner Commentary
"Owning the Galle Gallants is a long-term commitment to building a disciplined, competitive franchise anchored by elite Sri Lankan talent, supported by world-class international players, and led on the field by experienced coaching. Operating within the LPL Season 6 ecosystem alongside IPG, Flash Sports & Media, and urban-gro creates a strong platform to build sustainable franchise value and to contribute positively to Sri Lankan cricket."
Kiran Mantripragada, Owner and Principal, Gallant Sports and Media LLC
Disclaimer: Gallant Sports and Media LLC is the independent owner and operator of the Galle Gallants franchise and is not a subsidiary of, or affiliated with, urban-gro, Inc. (Nasdaq: UGRO), Flash Sports & Media, Inc., or Innovative Production Group FZ, LLC (IPG). References to UGRO, Flash Sports & Media, and IPG are made solely to identify the operator of the Lanka Premier League platform within which the Galle Gallants franchise participates. Player names referenced in this release are targets and discussion candidates only; participation is subject to final registration, contractual arrangements, applicable governing body and board approvals, and NOCs.
About Galle Gallants
The Galle Gallants are a professional T20 cricket franchise competing in the Lanka Premier League, owned and operated by Gallant Sports and Media LLC under the leadership of Owner and Principal Kiran Mantripragada.
About the Lanka Premier League
The Lanka Premier League is Sri Lanka's flagship professional T20 cricket tournament, bringing together elite Sri Lankan cricketers and leading international stars. Season 6 is operated via the Innovative Production Group FZ, LLC (IPG) platform under urban-gro, Inc. (Nasdaq: UGRO) / Flash Sports & Media, Inc., and is targeted for July 10 – August 5, 2026. More information: srilankacricket.lk
Forward-Looking Statements
This press release contains forward-looking statements regarding Gallant Sports and Media LLC's expectations, beliefs, and intentions concerning the Galle Gallants franchise, anticipated player acquisitions, coaching arrangements, participation in the Lanka Premier League and its broader operating ecosystem under the Innovative Production Group FZ, LLC (IPG) platform and urban-gro, Inc. (Nasdaq: UGRO) / Flash Sports & Media, Inc., and anticipated commercial opportunities, partnerships, and franchise value. Forward-looking statements may be identified by words such as "anticipate," "believe," "expect," "intend," "plan," "may," "will," "could," "seek," "estimate," "potential," or similar expressions. These statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties, including but not limited to: the Company's ability to complete player acquisitions on anticipated terms; reliance on third-party leagues, league operators, governing bodies, and commercial partners, including IPG, Flash Sports & Media, and urban-gro; uncertainties regarding sponsorship, media rights, and audience engagement; the Company's ability to develop, monetize, and scale franchise operations; competitive dynamics within the sports and media sectors; regulatory and legal considerations; and general economic, market, and industry conditions. Statements regarding urban-gro, Inc., Flash Sports & Media, Inc., and IPG, including statements regarding LPL Season 6 player pool size, marquee participants, brand ambassadors, and projected local economic impact, are derived from prior public disclosures by those parties and are subject to the risks and uncertainties identified in their respective filings. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, except as required by law.
Source: Gallant Sports and Media LLC / Galle Gallants
Chief Executive Kecia Steelman pointed to broad-based growth across all channels and major categories, and said the results show the cosmetics and fragrances retailer's strategy is working in an uncertain economic landscape.
Here's a look at the key metrics from the quarter.
ULTA stock is moving. Watch the price action here. Ulta reported quarterly earnings of $7.74 per share, which beat the Street estimate of $6.86 by 12.83%, according to Benzinga Pro data.
Quarterly revenue came in at $3.16 billion, which beat the consensus estimate of $3.09 billion and was up from $2.85 billion in the same period last year.
Ulta compared first-quarter 2026 results to the prior year’s quarter:
“Fiscal 2026 is off to a strong start, driven by broad-based growth across all channels and major categories. Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape,” said Kecia Steelman, CEO of Ulta Beauty.
Looking AheadUlta Beauty raised its fiscal 2026 GAAP EPS guidance to $28.36 to $28.80, versus the $28.42 analyst estimate and affirmed its revenue outlook of $13.14 billion to $13.26 billion, versus the $13.17 billion estimate.
ULTA Stock Price Activity: According to data from Benzinga Pro, Ulta Beauty stock climbed 5.43% to $521.95 in Tuesday's extended trading.
Photo: Shutterstock
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Ulta Beauty and an Ultimate Entry: Price Resets After Profit MissUlta Beauty NASDAQ: ULTA reported a strong start to fiscal 2026, with management citing broad-based sales growth across channels and categories, improved gross margin and continued progress on strategic initiatives including international expansion, marketplace, wellness, media and artificial intelligence.
On the company’s first-quarter earnings call, President and Chief Executive Officer Kecia Steelman said Ulta entered the year focused on maintaining momentum while “optimizing our model with financial discipline to deliver profitable growth.” She said the company’s U.S. business remains “fundamentally strong,” while newer businesses are gaining traction and contributing to results.
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3 Retailers at 52-Week Highs With More Room to RunFor the quarter, Ulta reported net sales growth of 11.1% to $3.2 billion, compared with $2.8 billion a year earlier. Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions. Diluted earnings per share increased 15.5% to $7.74.
Sales Growth Led by Stores, E-Commerce and Fragrance Chief Financial Officer Chris DelOrefice said total sales growth, excluding the impact of Space NK, was in the high single-digit range. During the quarter, Ulta opened 16 net new Ulta Beauty stores and one new Space NK store.
3 Stocks Most Likely to Split in 2026Both stores and digital contributed to comparable sales growth. DelOrefice said e-commerce delivered mid-teen sales growth, while comparable stores posted low single-digit sales growth. February comp sales increased in the low double digits as the company lapped its weakest comp performance of fiscal 2025, while March and April grew in the low single-digit range.
Fragrance was the company’s strongest category again in the quarter, delivering high-teen comparable growth and increasing to 12% of total revenue from 11% a year earlier. DelOrefice said growth was driven by newness from luxury brands including YSL, Carolina Herrera and Valentino, the early launch of Balmain, and innovation from exclusive brand NOYZ.
Haircare delivered high single-digit comparable growth, supported by prestige haircare, new brands including amika and Moroccanoil, and continued traction from exclusive brand Cécred. Makeup increased in the low single digits, driven mainly by prestige makeup and guest engagement with Rare Beauty, as well as newness from MAC, Kylie Cosmetics and Estée Lauder. Skincare and wellness posted low single-digit comp growth, while services increased in the mid-single digits.
Gross Margin Improves as Shrink Declines Gross margin increased 100 basis points to 40.1% of sales, which DelOrefice attributed primarily to lower inventory shrink and higher merchandise margin. He said Ulta saw shrink reductions “across every category and every region” during the quarter, following process improvements, associate training and targeted actions in high-risk locations.
Merchandise margin also improved, helped by better inventory turns and favorable category mix from Space NK. DelOrefice said elevated fuel prices resulted in higher-than-planned transportation costs, but supply chain productivity and efficiency efforts helped offset the pressure.
Selling, general and administrative expenses increased 14.6% to $850 million, as planned, due primarily to Space NK and investments supporting the company’s Ulta Beauty Unleashed strategy. Operating profit rose 11.6% to $448 million, or 14.2% of sales. Net income increased 11.6% to $340 million.
Guidance Maintained for Sales, Raised for Profit and EPS Ulta maintained its full-year net sales outlook, expecting growth of 6% to 7%. The company also maintained its comparable sales growth forecast of 2.5% to 3.5%.
However, management raised its operating profit expectations, now forecasting growth of 6.5% to 9% for the year. Ulta also increased its diluted EPS forecast to a range of $28.36 to $28.80, representing growth of 10.6% to 12.3%. The updated estimate assumes a weighted average share count of about 43 million shares and a tax rate of approximately 24.5%.
DelOrefice said the company continues to expect gross margin to be roughly flat for the full year, with higher inventory productivity, supply chain productivity and modest shrink improvement expected to offset higher fuel costs and targeted investments. SG&A growth is expected to be in line with or slightly below net sales growth for the year.
The company also reiterated its plan to return capital to shareholders. In the first quarter, Ulta repurchased $555 million of stock, using cash and its revolver. Management previously increased its fiscal 2026 stock buyback target to $1.5 billion from $1 billion.
Strategic Initiatives Include TikTok Shop, Marketplace and AI Steelman highlighted continued progress on the company’s Ulta Beauty Unleashed strategy. In stores, Ulta and its brand partners executed more than 40,000 in-store events during the quarter, including activations for Coach, Cécred and Live Tinted, and education workshops for brands including Redken, Rare Beauty and Lancôme.
On the digital side, Steelman said e-commerce momentum was supported by investments in infrastructure and enhancements such as expanded same-day delivery through Uber Eats and buy now, pay later options through Klarna. Ulta also launched its TikTok Shop during the quarter, with an initial focus on exclusive brands. Steelman said the company’s first TikTok shoppable livestream at Ulta Beauty World generated more than five million impressions and strong gross merchandise value.
The company’s loyalty program expanded to nearly 47 million members, up 4% year over year. Steelman said Ulta is using first-party loyalty data and technology improvements to enhance personalization, including efforts to predict replenishment purchases and improve cart conversion.
Ulta’s marketplace ended the quarter with more than 325 brands and over 8,000 SKUs across seven assortment focus areas. In wellness, the company added brands including Grüns and Medicine Mama. Steelman also said UB Media, the company’s retail media business, is rolling out new capabilities, including a YouTube enhanced measurement product.
Management Cites Healthy Beauty Demand but Value-Focused Consumers Management said the beauty and wellness categories remain healthy, though consumers are increasingly focused on value amid macroeconomic uncertainty, inflationary pressures and higher fuel prices.
Steelman said Ulta is positioned to respond through its mass-to-luxury assortment, omnichannel options, loyalty program and targeted promotions. In response to an analyst question, she said fragrance is one area where marketing and merchandising investments are paying off, particularly around events such as Mother’s Day.
Looking ahead, Steelman said Ulta is beginning work on a new experiential flagship location in Times Square, New York, expected to open in late 2027. She said the store will combine technology, entertainment, convenience and the company’s assortment to support guest experiences and brand activations.
“We are investing with discipline in the areas that matter the most,” Steelman said, pointing to assortment, omnichannel experience and deeper guest loyalty as priorities while the company navigates a dynamic environment.
About Ulta Beauty NASDAQ: ULTAUlta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ulta Beauty (ULTA - Free Report) came out with quarterly earnings of $7.74 per share, beating the Zacks Consensus Estimate of $6.9 per share. This compares to earnings of $6.7 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.20%. A quarter ago, it was expected that this beauty products retailer would post earnings of $8 per share when it actually produced earnings of $8.01, delivering a surprise of +0.13%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ulta, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $3.16 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $2.85 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ulta shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Ulta?While Ulta has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ulta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.15 on $2.99 billion in revenues for the coming quarter and $28.49 on $13.22 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Five Below (FIVE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This discount retailer is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +97.7%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Five Below's revenues are expected to be $1.2 billion, up 24.2% from the year-ago quarter.
For the quarter ended April 2026, Ulta Beauty (ULTA - Free Report) reported revenue of $3.16 billion, up 11.1% over the same period last year. EPS came in at $7.74, compared to $6.70 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.11 billion, representing a surprise of +1.64%. The company delivered an EPS surprise of +12.2%, with the consensus EPS estimate being $6.90.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ulta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales - YoY change: 5.3% versus the eight-analyst average estimate of 4.3%.Total stores open at end of the quarter: 1,608 compared to the 1,517 average estimate based on six analysts.Number of stores opened during the quarter: 19 versus the five-analyst average estimate of 13.Net Sales by Primary Category - Other: 2% versus the two-analyst average estimate of 2%.Net Sales by Primary Category - Fragrance: 12% versus the two-analyst average estimate of 11%.Net Sales by Primary Category - Haircare: 18% versus the two-analyst average estimate of 18%.Net Sales by Primary Category - Cosmetics: 40% versus the two-analyst average estimate of 39.2%.Net Sales by Primary Category - Services: 4% compared to the 3.8% average estimate based on two analysts.View all Key Company Metrics for Ulta here>>>
Shares of Ulta have returned -3.3% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Net Sales: Increased 11.1% to $3.2 billion compared to $2.8 billion last year.Comparable Sales Growth: Increased 5.3%, driven by a 3.7% increase in average tic
Key Takeaways ULTA Q1 net sales rose 11.1% to $3.16B; comparable sales increased 5.3%.Ulta Beauty kept fiscal 2026 sales guidance, but raised operating income and EPS outlook.ULTA repurchased $555M in Q1 and now plans $1.5B of buybacks for fiscal 2026. Ulta Beauty, Inc. (ULTA - Free Report) used its first-quarter call to make a broader point than the headline beat. Management argued the business is gaining traction across channels, categories and newer growth vehicles while keeping a tighter grip on profitability.
That message mattered because the company left its sales outlook unchanged in a tougher consumer backdrop, while still lifting profit and EPS expectations for fiscal 2026.
ULTA Builds on a Strong CorePresident and CEO Kecia Steelman said the U.S. business remains fundamentally strong, with growth supported by stores, e-commerce and major product categories.
Net sales rose 11.1% to $3.16 billion, surpassing the consensus estimate by 1.64%. Adjusted earnings per share of $7.74 topped the Zacks Consensus Estimate of $6.90 by 12.2%.
Comparable sales increased 5.3%, driven by a 3.7% increase in average ticket and a 1.6% gain in transactions. Steelman said performance was broad-based, with prestige share gains and roughly flat share in mass beauty.
Management also pointed to digital momentum. E-commerce posted mid-teen sales growth, helped by same-day delivery expansion, Klarna buy now, pay later options and buy online, pick up in store capabilities.
Ulta Beauty Expands Beyond the CoreSteelman spent meaningful time on growth initiatives that extend beyond the legacy U.S. beauty model. Space NK continued to post healthy growth, while Ulta added stores in Mexico and opened a third Middle East location through franchise partner Alshaya.
The company also highlighted marketplace, wellness and media as incremental growth drivers. Marketplace ended the quarter with more than 325 brands and over 8,000 SKUs, while wellness benefited from assortment expansion in supplements, self-care and intimate care.
Social commerce emerged as another priority. Steelman said TikTok Shop is being used less as a pure sales channel and more as a customer acquisition and brand-building tool, especially for younger shoppers and Ulta’s exclusive brands
ULTA Finds Profit Levers in the ModelChief financial officer Chris DelOrefice framed the quarter as proof that Ulta can drive profitable growth, not just sales growth. Gross margin expanded 100 basis points to 40.1%, helped by lower inventory shrink and better merchandise margin.
Shrink improvement stood out as a recurring theme. DelOrefice said targeted actions in higher-risk stores, better processes and training, and data-driven execution produced shrink reductions across every category and region.
Those gains helped offset higher fuel-related transportation costs and a 14.6% increase in SG&A expense.Management tied the expense growth mainly to Space NK and investments already underway in the Ulta Beauty Unleashed strategy.
Ulta Beauty Keeps Sales View IntactDespite the strong quarter, management did not raise its top-line outlook. Ulta still expects fiscal 2026 net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%.
What did change was the profit outlook. Operating income growth guidance moved to 6.5% to 9% from 6% to 9%, and EPS guidance increased to $28.36 to $28.80 from $28.05 to $28.55.
DelOrefice said the company is taking a measured stance because of macro uncertainty, even as first-quarter execution came in strong. He added that Ulta expects stronger sales growth in the first half, aided by Space NK and a tougher comparison base later in the year.
ULTA Faces Questions on Traffic and CompetitionAnalysts repeatedly pressed management on the cadence of comparable sales, traffic and the competitive backdrop. Steelman said February benefited from lapping a weak comparison, while March and April comps were in the low single digits, largely in line with expectations.
Questions also centered on whether the beauty category is getting more promotional and whether Ulta needs extra investment to protect its share.
Steelman responded that beauty remains competitive, but said exclusivity, brand building and the company’s mass-to-luxury assortment remain clear differentiators.
On traffic, management emphasized marketing, events, loyalty and personalization rather than a broad pricing response. The company’s loyalty base reached nearly 47 million members, up 4% year over year, which executives described as a major advantage in targeted engagement.
Ulta Beauty Puts Cash Behind the PlanCapital allocation was another key message on the call. Ulta repurchased 958,323 shares for $555 million in the quarter and ended May with $1.3 billion still available under its authorization.
DelOrefice said the company now plans to buy back $1.5 billion of stock in fiscal 2026, up from the prior $1 billion target. He said management views the current environment as an attractive opportunity to deploy capital while still funding growth.
The company also continued investing in stores and infrastructure. Ulta opened 16 net new U.S. stores and one Space NK location in the quarter, and it is planning a highly experiential Times Square flagship for late 2027.
ULTA Stays Focused on Share and DisciplineThe tone coming out of the call was confident but controlled. Steelman consistently returned to the idea that Ulta can still gain share while staying disciplined on costs and selective on where it invests.
That balance now looks central to the 2026 story. Management is pushing digital, international, marketplace, wellness and AI initiatives, but it is also signaling that margin protection and earnings growth matter just as much as top-line expansion.
Zacks Signals Favor Growth, But Rank Stays NeutralULTA carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of B, Value Score of C and VGM Score of A. That combination points to favorable growth and blended style characteristics, even if the rank itself is not in the most bullish tier. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are designed to complement the Zacks Rank, not override it. A Zacks Rank #3 can still support a neutral stance, while the strong Growth and VGM grades indicate better underlying style characteristics than the rank alone. That said, the Zacks Rank can change as earnings estimate revisions move in the wake of quarterly results.
1. Microsoft Breaks Into AI "Vibe Coding" Microsoft (MSFT 0.80%) – expanding beyond providing AI cloud infrastructure and services – unveiled its new AI coding tool at its Build conference in San Francisco Tuesday. Using a process known as vibe coding, MAI-Code-1-Flash allows non-technical users to produce software source code through text-based interaction. The company also announced a new MAI-Thinking-1 reasoning model, "built for high efficiency and performance, but importantly, at a low token cost."
"What you just saw is a pretty significant shift": In his address, CEO Satya Nadella added, "We believe the time has come for every company to just move from consuming a frontier model to fully participating ... in the frontier ecosystem." The stock closed the day down 4.2%. Commercially useful quantum machines targeted for 2029: Competing with IBM (IBM 0.66%), Microsoft set an ambitious schedule as it introduced its new Majorana 2 quantum processor. The new chip can reportedly keep qubits stable for 20 seconds – around 1,000 times longer than the earlier Majorana 1. 2. After-Hours Earnings Roundup: Palo Alto and Ulta Beauty Palo Alto (PANW 0.11%) fell over 5% in early trade, even after CEO Nikesh Arora said "our Q3 performance was exceptional" during yesterday's earnings call from the Rule Breakers recommendation. Annual recurring revenue from the company's Next Generation Security platform surged 60% year over year (YoY), to hit $8.13 billion – though management warned of "rising component costs, particularly in memory and storage."
"This is our most significant quarterly outperformance to date and surpassed our guidance": Arora added, "Over the past quarter, Frontier AI development reached a critical inflection point," as the company raised Q4 revenue guidance to between $11.415 billion and $11.425 billion. Ulta Beauty (ULTA 1.32%) reported an 11.1% YoY increase in Q1 revenue on Tuesday. CEO Kecia Steelman told investors, "Performance continues to be fueled by the strength of our core U.S. business," adding "We gained share in prestige beauty, and we were roughly flat in mass beauty." The stock, recommended by both Team RB and HG, rose around 1% in pre-market trading. 3. What Foolish Investors Ought to Watch on Wednesday Medtronic (MDT 0.31%) reported its highest annual revenue growth to date, of 8.4%, this morning – as Q4 beat the Dividend Investor rec's 9% YoY revenue rise in Q3, with 9.9% this time. Cardiac Ablation Solutions revenue increased 78% globally over Q4 last year, and 124% in the U.S. The company announced its 49th consecutive year of dividend rises, with the stock nudging up a little over 1% in response. Macy's (M +1.54%) reported its "strongest first quarter in four years," as total comparable sales rose 3% in Q1 – with Bloomingdale's sales up 10.2%. CEO Tony Spring spoke of "exceeding expectations for the fifth consecutive quarter." The company returned $50 million in cash to shareholders in the quarter. The stock rose around 2% in response. Five Below (FIVE 1.92%) – recommended by Team Rule Breakers – will reveal first quarter results for fiscal 2026 after the market closes. As highlighted in Monday's Breakfast News, CrowdStrike (CRWD 0.85%), Broadcom (AVGO 1.23%), and Veeva (VEEV 1.99%) will also report this afternoon. 4. Report: SpaceX Decides IPO Pricing SpaceX is aiming for a $135 share price, Reuters reported, with over 555 million shares potentially up for sale – to raise around $75 billion in what would be an all-time record IPO. The terms of the offering could be revealed as soon as today, said Bloomberg, with formal marketing starting tomorrow.
"It may be a stretch to achieve the valuation they want even with very generous multiples": Not everyone is bullish about the prospects, as Vey-Sern Ling at Union Bancaire Privee sounded a caution, though he added, "The market has always given Elon Musk the benefit of the doubt." "My guess is following this stock and its potential growth will require much more than reading the financial statements. Why? The innovation story will foreshadow the financial story": Fool analyst Tim Beyers recently noted, "At root, SpaceX will either be a triumph or failure of extra-terrestrial engineering. Understand that, and we'll have a better chance of properly valuing a business that casts itself as invaluable." 5. May Review: Software and Solar Soared As the market has reached new highs, market valuations have also neared levels not seen since the peak of the dot-com bubble. If you're an experienced investor with a high risk tolerance and a long timeline until you need to turn your stocks into cash, then this may be just noise ... But for those near or in retirement, this might be a good time to reevaluate how much of your portfolio should be protected in safer cash and bonds -- while still keeping a significant portion of your portfolio invested in stocks. --Robert, Brokamp, cfa
6. Your Take Are there any themes or sectors you're reconsidering at the start of this new month?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, CrowdStrike, International Business Machines, Medtronic, Microsoft, Ulta Beauty, and Veeva Systems. The Motley Fool recommends Five Below and Palo Alto Networks. The Motley Fool has a disclosure policy.
Ulta Beauty, Inc. offers a compelling value play, trading at a P/E of 17.5x with robust Q1 results and a double beat on earnings. ULTA's growth is driven by store expansion, improved revenue mix, and a loyal member base, supporting a long-term compounding thesis. Despite yellow flags—such as inorganic growth, uneven comp sales, and buybacks funded with credit—the valuation compensates for macro and competitive risks.
Ulta Beauty Inc (NASDAQ:ULTA) reported first quarter results that exceeded Wall Street expectations, but shares fell nearly 6% as investors focused on a modest increase to the company's full-year earnings guidance.
Ulta raised its fiscal 2026 earnings guidance to a range of $28.36 to $28.80 per share, up from its prior forecast of $28.05 to $28.55. However, the midpoint of the new range, $28.58, was only slightly above the previous midpoint and roughly in line with analysts' expectations.
The company left its forecasts for net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5% unchanged. Ulta slightly increased its operating income growth outlook to 6.5% to 9%, compared with its previous projection of 6% to 9%.
Capital expenditures are still expected to be between $400 million and $450 million for the fiscal year.
For the quarter ended May 2, Ulta reported earnings per share of $7.74, up 15.5% from a year earlier and ahead of analysts' expectations of $6.87.
Revenue rose 11.1% year-over-year to $3.16 billion, topping the consensus estimate of $3.11 billion.
Comparable sales increased 5.3%, exceeding analyst expectations for roughly 4.6% growth. The gain was driven by a 3.7% increase in average ticket size and a 1.6% increase in transactions.
The company also returned $555 million to shareholders through share repurchases during the quarter.
"Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories," Ulta CEO Kecia Steelman said in a statement.
"Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape."
Ulta Beauty (ULTA) is experiencing a decline in stock price despite exceeding expectations in its Q1 performance. The company reported earnings per share (EPS)
Key Takeaways Ulta Beauty beat Q1 FY26 earnings and sales estimates; net sales rose 11.1% to $3.16B. Ulta Beauty comps grew 5.3% as average ticket rose 3.7%, and transactions increased 1.6%.Ulta Beauty raised FY26 EPS guidance to $28.36-$28.80 and kept 6%-7% net sales growth. Ulta Beauty, Inc. (ULTA - Free Report) reported first-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company delivered double-digit sales and earnings growth, driven by broad-based strength across channels and product categories, along with contributions from the Space NK acquisition.
The beauty retailer reported first-quarter fiscal 2026 earnings per share of $7.74, beating the Zacks Consensus Estimate of $6.90. The bottom line increased 15.5% from the year-ago quarter’s reported figure of $6.70.
Net sales rose 11.1% year over year to $3,163.9 million and surpassed the Zacks Consensus Estimate of $3,113 million. Growth was primarily driven by higher comparable sales, contributions from the Space NK acquisition and sales from new stores. Comparable sales increased 5.3%, supported by a 3.7% rise in average ticket and a 1.6% jump in transactions.
ULTA’s Quarterly Results: Key Metrics & InsightsUlta Beauty’s gross profit increased 13.8% year over year to $1,267.6 million. Gross margin expanded 100 basis points to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. Improvements in inventory productivity and favorable category mix also aided profitability.
Selling, general and administrative (SG&A) expenses increased 14.6% to $814.7 million from $710.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses rose to 25.8% from 24.9%. The increase was primarily due to the acquisition of Space NK, strategic enterprise investments and higher store-related expenses, partially offset by leverage in advertising expenses.
Operating income surged 11.6% to $448.3 million from $401.8 million in the year-ago quarter. As a percentage of net sales, operating income improved slightly to 14.2% from 14.1% in the prior-year period.
ULTA’s Category Performance Remains Broad-BasedPerformance was broad-based across all major categories in the quarter. Fragrance remained the strongest category, delivering high-teens comparable sales growth, driven by newness from luxury brands such as YSL, Carolina Herrera, Valentino and Balmain, as well as innovation from exclusive fragrance brand NOYZ.
Haircare generated high-single-digit comparable growth, supported by strength in prestige haircare, new and exclusive brands, and healthy demand for hair-treatment products.
Makeup posted low-single-digit comparable sales growth, aided by prestige makeup performance and the successful launch of Rare Beauty. Skincare and wellness delivered low-single-digit comparable growth, benefiting from prestige skincare, mass skincare and continued momentum in supplements and self-care products. Services revenues increased in the mid-single-digit range, supported by strong member engagement.
Ulta Beauty’s Strategic Initiatives Gain TractionUlta Beauty continued to advance its “Ulta Beauty Unleashed” strategy during the quarter. The company launched TikTok Shop, positioning itself as a key beauty discovery platform and strengthening engagement with younger consumers. Ulta Beauty also added more than 20 new brands during the quarter, expanded its marketplace assortment to more than 325 brands and 8,000 SKUs and grew its loyalty program to approximately 46.9 million members, up 4% year over year.
The company continued expanding its international presence through Space NK, Mexico and the Middle East. Management also announced plans for a highly experiential flagship location in Times Square, NY, which is expected to open in late 2027.
ULTA’s Financial Health Snapshot & Store UpdateThis Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $166.3 million and short-term investments of $55 million. Merchandise inventories increased 12.5% year over year to $2.4 billion. Short-term debt totaled $144.9 million, while stockholders’ equity stood at $2.58 billion at quarter-end.
Net cash provided by operating activities was $261.9 million in the first quarter. Capital expenditures totaled $58.3 million, primarily related to investments in new and existing stores.
During the quarter, Ulta Beauty repurchased 958,323 shares of its common stock for $555 million. As of May 2, 2026, approximately $1.3 billion was available under the company’s $3 billion share buyback authorization announced in October 2024.
Ulta Beauty opened 16 net new stores in the United States and one net new Space NK store during the quarter. The company ended the period with 1,521 Ulta Beauty stores and 87 Space NK stores.
What to Expect From ULTA in FY26?Following its better-than-expected first-quarter performance, Ulta Beauty updated its fiscal 2026 outlook.
The company continues to expect net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Management now anticipates operating income growth of 6.5% to 9% compared with its previous expectation of 6% to 9%.
Ulta Beauty raised its fiscal 2026 earnings per share guidance to the range of $28.36-$28.80 from the prior range of $28.05-$28.55.
Shares of ULTA have tumbled 25.2% over the past three months compared with the industry’s decline of 17.5%.
Stocks to ConsiderRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 8.2% and 15.6%, respectively, from the year-ago figures.
Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently carries a Zacks Rank #2 (Buy). FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 11.5% and 20.2%, respectively, from the year-ago figures.
The TJX Companies (TJX - Free Report) , a major off-price apparel and home fashions retailer, currently carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year sales calls for growth of nearly 5.8%, and estimates for earnings suggest an 8.9% increase from the year-ago figure. TJX delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Ulta Beauty and an Ultimate Entry: Price Resets After Profit MissUlta Beauty NASDAQ: ULTA reported double-digit sales and earnings growth in the first quarter of fiscal 2026, with management citing broad-based gains across channels and major merchandise categories, stronger gross margin and continued traction from strategic initiatives including international expansion, marketplace, wellness and retail media.
Chief Executive Officer Kecia Steelman said the company entered the year focused on continuing progress after meeting its fiscal 2025 goals while optimizing the business “with financial discipline to deliver profitable growth.” She said Ulta Beauty’s core U.S. business remains “fundamentally strong,” and that newer growth initiatives are contributing to results.
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3 Retailers at 52-Week Highs With More Room to RunFor the quarter, net sales rose 11.1% to $3.2 billion from $2.8 billion a year earlier. Comparable sales increased 5.3%, driven by a 3.7% increase in average ticket and a 1.6% rise in transactions. Diluted earnings per share increased 15.5% to $7.74.
Chief Financial Officer Chris DelOrefice said total sales growth, excluding the impact of Space NK, was in the high single-digit range. Ulta Beauty opened 16 net new Ulta Beauty stores and one new Space NK store during the quarter. Other revenue rose $6 million to $62 million, primarily due to higher income from the company’s credit card program and commissions from UB Marketplace, partially offset by lower royalty income from its partnership with Target Corporation.
Comparable Sales Lifted by Stores and Digital 3 Stocks Most Likely to Split in 2026Steelman said performance was broad-based, with all channels and major categories contributing positively. She said Ulta Beauty gained share in prestige beauty and was roughly flat in mass beauty.
DelOrefice said February delivered low double-digit comparable sales growth as the company lapped its weakest comparable performance from fiscal 2025, while March and April were in the low single-digit range. Both stores and digital contributed to comparable sales growth, with e-commerce delivering mid-teen sales growth and comparable stores posting low single-digit sales growth.
Steelman highlighted continued momentum in e-commerce, supported by infrastructure investments and newer offerings such as expanded same-day delivery through Uber Eats and buy now, pay later options through Klarna. She also pointed to the launch of Ulta Beauty’s TikTok Shop, which is focused on “only at Ulta” exclusive brands. The company hosted its first TikTok shoppable livestream at its Ulta Beauty World event, which Steelman said generated more than 5 million impressions and “strong GMV.”
In response to an analyst question, Steelman said TikTok Shop is still in its early phases and is being used primarily for guest acquisition and marketing rather than as a main driver of e-commerce revenue. “We do see that it’s not just an e-com play,” she said, adding that the company also sees a halo impact for stores.
Fragrance Leads Category Growth DelOrefice said fragrance was Ulta Beauty’s strongest category again in the quarter, delivering high-teen comparable growth and increasing from 11% to 12% of total revenue. Growth was driven by newness from luxury brands including YSL, Carolina Herrera and Valentino, as well as innovation from exclusive brand NOYZ.
Haircare delivered high-single-digit comparable growth, led by prestige haircare. DelOrefice cited strong performance from amika and Moroccanoil, while hair treatments and scalp regimens outperformed. Hair tools declined as the company lapped prior-year launches and saw softness in traditional tools.
Makeup comparable sales increased in the low-single-digit range, driven primarily by prestige makeup. DelOrefice pointed to guest engagement with Rare Beauty and newness from MAC, Kylie Cosmetics and Estée Lauder. Mass makeup was relatively flat. Skincare and wellness also delivered low-single-digit comparable growth, with strength in prestige skincare, mass skincare and wellness supplements partially offset by pressure in body care.
Services posted mid-single-digit comparable growth, supported by salon and specialty services, including ear piercing and makeup services.
Margins Improve as Shrink Declines Gross margin increased 100 basis points to 40.1% of sales, primarily due to lower inventory shrink and higher merchandise margin. DelOrefice said the company’s efforts to reduce shrink delivered benefits across every category and region during the quarter. Merchandise margin increased primarily due to improving inventory turns and favorable category mix from Space NK.
SG&A expense increased 14.6% to $850 million, as planned, driven mainly by Space NK and investments supporting the Ulta Beauty Unleashed strategy. Operating profit rose 11.6% to $448 million, or 14.2% of sales. Net income increased 11.6% to $340 million.
The company ended the quarter with $221 million in cash and short-term investments and $145 million in short-term debt. Inventory increased 12.5% to $2.4 billion, reflecting new brands, the Space NK acquisition and 70 net new Ulta Beauty stores. On a per-store basis, inventory increased 1.4%.
Guidance Maintained for Sales, Raised for Earnings Ulta Beauty maintained its fiscal 2026 net sales growth outlook of 6% to 7% and its comparable sales growth outlook of 2.5% to 3.5%. DelOrefice said the company expects net sales growth to be stronger in the first half, reflecting first-quarter performance and the benefit from Space NK.
The company raised its operating profit growth outlook and now expects operating profit to increase 6.5% to 9% for the year. DelOrefice said gross margin is expected to be roughly flat for the year, with higher inventory productivity, supply chain productivity and modest shrink improvement offsetting higher fuel costs and targeted investments.
Ulta Beauty also increased its diluted EPS guidance to a range of $28.36 to $28.80, representing growth of 10.6% to 12.3%. The updated guidance assumes a weighted average share count of about 43 million shares and a tax rate of approximately 24.5%. The company also reiterated its plan to increase fiscal 2026 share repurchases from $1 billion to $1.5 billion.
Strategic Initiatives Expand Steelman said Ulta Beauty expanded its loyalty program to nearly 47 million members, up 4% year over year, and is using first-party data and technology improvements to enhance personalization. She said the company is using loyalty data to understand behavior, predict replenishment purchases and drive cart conversion.
The company’s international efforts included new stores in Mexico and the Middle East. Steelman said Space NK continues to deliver “healthy, well-balanced growth” in the U.K. and Ireland. In Mexico, Ulta Beauty opened two stores, including a location in Mexico City, while franchise partner Alshaya opened a third Middle East store at the Dubai Mall.
Ulta Beauty’s marketplace ended the quarter with more than 325 brands and over 8,000 SKUs. The company also continued to expand wellness offerings and UB Media capabilities, including a new YouTube enhanced measurement product.
Steelman also announced that the company is beginning work on a highly experiential Ulta Beauty location in Times Square, New York, expected to open in late 2027. She said the flagship store will combine technology, entertainment, convenience and brand activations to create immersive guest experiences.
About Ulta Beauty NASDAQ: ULTAUlta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ulta Beauty NASDAQ: ULTA has hurdles like any consumer company this year, but it is navigating the scene well, and its strategies are working. Focused on increased store count, international expansion, acquisitions, and expanding product lines, the company is growing, outperforming estimates, and on track to sustain strength in upcoming quarters.
Ulta Beauty Today
$470.62 -5.80 (-1.22%)
As of 12:56 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$452.05▼
$714.97P/E Ratio17.63
Price Target$644.91
The takeaway for investors is that Ulta Beauty’s stock price is at long-term lows, set up to rebound as the year progresses. The only question is the timing, and it may be sooner than early June price action suggests. With the company gaining traction, the stock at deep value levels, and sell-side forces in accumulation mode, the stock price has virtually nowhere to go but up.
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The initial analyst response to the company's Q1 earnings report sums up the situation nicely. It included several price target reductions, issued immediately following the report, but those are notes of caution within an otherwise bullish outlook. The price target reductions were a hit to sentiment, but the $651 consensus price target still offers a substantial upside opportunity in a Buy-rated stock. A move to Cannaccord’s new $731 target would equate to new all-time highs, and there are catalysts ahead to drive this market
Catalysts Loom for Ulta Beauty: Rebound AheadFuture earnings reports are likely to reveal additional momentum, sustaining a bullish outlook for this stock’s price. As it stands, MarketBeat tracks 27 analysts who rate the stock a consensus Moderate Buy, with a 75% Buy-side bias. The trailing 12-month (TTM) average price target of $688 implies a 40% upside from key support levels, and may be reached within months of a confirmed bottom. Signs the bottom has been reached include technical and sell-side factors; signs that new highs will be set include the analyst forecasts and technical factors.
Institutions are the driving force in this market. They own approximately 90% of the stock and have been accumulating it on a TTM basis. MarketBeat data reveal they were accumulating at a rate of nearly $2 per $1 for four consecutive quarters, even as price action was highly volatile. Meanwhile, the technical factors include a sharp convergence on the monthly price action. The MACD convergence shows a market gaining strength as it hit the early 2026 peak, setting it up to retest the existing high at least on the next rebound. Again, the only question is the timing, and it could easily begin by mid-summer, if not sooner.
Ulta Beauty Fires on All Cylinders in FQ1 2026Ulta Beauty had a solid Q1 with revenue growing by 11.1% to $3.16 billion, 130 basis points better than expected. The strength was driven by a 5.3% comp store increase, new stores, and acquisitions. Sales were strong across product categories, with cosmetics leading at up 40%. Skin care grew by 24%, hair by 18%, and fragrances by 12%, all strong showings. Sales were also strong across channels, revealing the impact of Ulta’s digitization and eCommerce shifts.
Margin news was also good. Fears of margin degradation tied to tariffs, macro headwinds, and aggressive growth plans were overblown. The company managed to widen its gross margin by 100 bps and keep costs under control. Operating income grew by 11.6%, adjusted net income by 10.8%, and diluted earnings per share by 15.5%, outpacing the consensus estimate by more than 1000 bps. Looking ahead, the company expects margin strength to continue. Management reaffirmed its revenue target and raised its earnings outlook to align with consensus figures.
Management also increased the 2026 buyback target, a trigger for institutional money flows. The increase was worth $500 million, bringing the total to $1.5 billion in a sign of confidence in future cash flow. The critical takeaway is that Ulta is aggressively reducing its share count while accelerating growth, raising questions about the valuation and stock price. At $465 per share, Ulta trades at only 7X its 10-year earnings outlook, suggesting that 200% or more in stock price upside is possible over time.
Ulta’s balance sheet provides no red flags, only reasons to believe share buybacks will continue. The quarter-ending highlights include a reduced cash offset by increased current and total assets, persistently low leverage, and a 6% increase in equity, despite heavy investment and capital returns. The likely outcome is that Ulta continues reducing its share count in upcoming quarters, accelerating its stock price rebound over time. The biggest risk for Ulta this summer is oil and gas prices and their impact on consumer habits.
Should You Invest $1,000 in Ulta Beauty Right Now?Before you consider Ulta Beauty, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ulta Beauty wasn't on the list.
While Ulta Beauty currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Ulta Beauty (ULTA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Ulta currently has an average brokerage recommendation (ABR) of 1.66, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.66 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68% and 4% of all recommendations.
Brokerage Recommendation Trends for ULTA
Check price target & stock forecast for Ulta here>>>
While the ABR calls for buying Ulta, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ULTA Worth Investing In?Looking at the earnings estimate revisions for Ulta, the Zacks Consensus Estimate for the current year has increased 0.8% over the past month to $28.67.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Ulta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Ulta may serve as a useful guide for investors.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Ulta Beauty (ULTA - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this beauty products retailer a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Ulta is 14.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11.8% this year, crushing the industry average, which calls for EPS growth of 4%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Ulta has an S/TA ratio of 1.85, which means that the company gets $1.85 in sales for each dollar in assets. Comparing this to the industry average of 1.26, it can be said that the company is more efficient.
In addition to efficiency in generating sales, sales growth plays an important role. And Ulta looks attractive from a sales growth perspective as well. The company's sales are expected to grow 6.6% this year versus the industry average of 1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Ulta. The Zacks Consensus Estimate for the current year has surged 0.8% over the past month.
Bottom LineUlta has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Ulta is a potential outperformer and a solid choice for growth investors.
Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Petco Health & Wellness (WOOF - Free Report) or Ulta Beauty (ULTA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Petco Health & Wellness is sporting a Zacks Rank of #1 (Strong Buy), while Ulta Beauty has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WOOF is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WOOF currently has a forward P/E ratio of 14.32, while ULTA has a forward P/E of 16.68. We also note that WOOF has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ULTA currently has a PEG ratio of 1.50.
Another notable valuation metric for WOOF is its P/B ratio of 0.76. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ULTA has a P/B of 7.96.
Based on these metrics and many more, WOOF holds a Value grade of B, while ULTA has a Value grade of C.
WOOF sticks out from ULTA in both our Zacks Rank and Style Scores models, so value investors will likely feel that WOOF is the better option right now.
