Trex Stock Drops 4.9% Amid Weaker Construction Spending Data

Trex Company stock took a hit on September 1, 2026, after U.S. construction spending in July fell to a near three-year low. The data weighed heavily on housing-related names, with Trex shares dropping 4.9% to close around $43.34.

The decline in construction spending was attributed to higher mortgage rates, which are pressuring single-family homebuilding, a sector closely linked to demand for decking and outdoor products from Trex.

Other housing-related stocks also reacted negatively to the data, with Builders FirstSource losing 5.4%, LGI Homes off 3.9%, Home Depot down 2.5%, and Lowes off 2.3% as of September 1, 2026.

Trex has delivered a robust performance in 2026, with a year-to-date share price return of 27.21%. However, the company's stock might trade at roughly 16.6% below its consensus fair value estimate of $54.67 per share, according to recent valuation work.