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Terex Downgraded to Strong Sell

Zacks Equity Research

On Jun 20, Zacks Investment Research downgraded Terex Corp. (TEX) to Zacks Rank #5 (Strong Sell).

Why the Downgrade?

Terex’s share price and earnings estimates have witnessed a sharp downward trend after it announced a lowered 2013 guidance on Jun 17. Earnings estimates of this global manufacturer of a broad range of equipment used in various industries have been on the downside on the back of a reduced fiscal 2013 outlook for its Construction and Material Handling & Port Solutions segments.

Terex’s first-quarter 2013 adjusted earnings of 23 cents per share declined 21% from 29 cents earned in the year-ago quarter. The company’s earnings fell short of the Zacks Consensus Estimate of 28 cents as well.

Terex slashed its full-year earnings guidance to $1.90 to $2.10 a share from $2.40 to $2.70 as its sales growth has been weaker than anticipated. Markets are reportedly weak for Construction, Material Handling & Port Solutions and Cranes operations. Also, North America is improving at a slower pace and weak European markets still remain an overhang.

Over the last 7 days, the Zacks Consensus Estimate for Terex’s fiscal 2013 earnings decreased 20% to $2.02 per share, while for fiscal 2014 it went down 8% to $3.15 per share.

Other Stocks to Consider

Not all stocks in the same industry are performing as poorly as Terex. We recommend Kubota Corporation (KUB) with a Zacks Rank #1 (Strong Buy), while H&E Equipment Services Inc. (HEES) and  Alamo Group, Inc. (ALG) carrying a Zacks Rank #2 (Buy) are also good investment options.

Read the Full Research Report on TEX

Read the Full Research Report on KUB

Read the Full Research Report on HEES

Read the Full Research Report on ALG

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