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Why is AZEK Stock Up Today After Strong Earnings

The AZEK Company Inc. (AZEK) saw its stock rise by 2.53% to close at $51.50 on February 5, 2025, following a strong earnings report and positive analyst sentiment. The company reported Q1 2025 earnings that significantly exceeded expectations, with revenue reaching $285 million against a consensus of $265 million, and EPS at $0.17 compared to the expected $0.13. This robust performance was attributed to double-digit residential sell-through and strategic expansions, including new stocking locations and increased recycling capabilities. Citi reiterated its "Buy" rating, raising the price target to $61, highlighting AZEK's market share gains and strategic positioning in the wood-to-composite conversion trend.

The stock's movement was further supported by positive ratings from multiple analysts, including Bank of America Securities and Truist Financial, both maintaining "Buy" ratings. Despite a lighter Q2 guidance, the overall sentiment remains optimistic, with analysts projecting continued growth in the latter half of the year. The trading volume was notably high at 3,234,976 shares, more than double the average, indicating strong investor interest.