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.
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