Terex (TEX) Laps the Stock Market: Here's Why
The latest trading session saw Terex (TEX) ending at $56.62, denoting a +1.87% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.88%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the machinery products maker had lost 3.14% over the past month. This has lagged the Industrial Products sector's loss of 1.95% and the S&P 500's gain of 0.64% in that time.
The investment community will be paying close attention to the earnings performance of Terex in its upcoming release. The company is expected to report EPS of $1.40, up 4.48% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.22 billion, indicating a 0.46% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Terex. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.3% lower. Terex presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Terex is holding a Forward P/E ratio of 7.85. This valuation marks a discount compared to its industry's average Forward P/E of 9.75.
It's also important to note that TEX currently trades at a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 0.89.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Terex Corporation (TEX) : Free Stock Analysis Report
