Why Terex (TEX) Dipped More Than Broader Market Today
Terex (TEX) ended the recent trading session at $57.46, demonstrating a -1.95% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Prior to today's trading, shares of the machinery products maker had gained 18.38% over the past month. This has outpaced the Industrial Products sector's gain of 11.67% and the S&P 500's gain of 5.24% in that time.
The upcoming earnings release of Terex will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.40, reflecting a 4.48% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.23 billion, indicating a 0.65% upward movement from the same quarter last 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.
Investors should also take note of any recent adjustments to analyst estimates for Terex. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, the Zacks Consensus EPS estimate has moved 0.05% higher. Terex is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Terex is currently exchanging hands at a Forward P/E ratio of 8.26. This expresses a discount compared to the average Forward P/E of 10.59 of its industry.
One should further note that TEX currently holds a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 0.98.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 237, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Terex Corporation (TEX) : Free Stock Analysis Report
