Why Terex (TEX) Dipped More Than Broader Market Today
Terex (TEX) closed the latest trading day at $58.03, indicating a -0.62% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.36%.
Heading into today, shares of the machinery products maker had gained 16.83% over the past month, outpacing the Industrial Products sector's gain of 8.56% and the S&P 500's gain of 5.21% in that time.
Market participants will be closely following the financial results of Terex in its upcoming release. In that report, analysts expect Terex to post earnings of $1.40 per share. This would mark year-over-year growth of 4.48%. In the meantime, our current consensus estimate forecasts the revenue to be $1.23 billion, indicating a 0.65% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.09 per share and revenue of $5.15 billion, indicating changes of +64.12% and +16.68%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Terex. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Terex boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Terex is at present trading with a Forward P/E ratio of 8.23. This represents a discount compared to its industry's average Forward P/E of 10.08.
Meanwhile, TEX's PEG ratio is currently 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.96 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 9% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
