Back to top

Analyst Blog

Shares of global equipment maker, Terex Corp. (TEX - Analyst Report) reached a new 52-week high of $42.36 on Dec 31. Terex has a market cap of $4.68 billion. Average volume of shares traded over the last three months stood at approximately 1785K. Terex has long-term estimated earnings per share growth rate of 9.3%.

What’s Driving Terex Upward?

Terex’s shares have escalated following the announcement of its third quarter earnings on Oct 23. Terex reported third-quarter 2013 adjusted earnings of 77 cents per share, a 24% improvement year over year, mainly due to reduced interest expense and a lower effective tax rate. The results also surpassed the Zacks Consensus Estimate of 58 cents.

Shares of Terex also gained after it announced the initiation of quarterly dividends of 5 cents per share and a $200 million share repurchase program on Dec 5. The dividend initiation and buyback is in line with Terex’s commitment to return wealth to shareholders, which also reflects its long-term growth potential and strong financial profile.

Furthermore, the announcement on Dec 9 that Terex is selling its truck business to transform into a lifting and material handling solutions company has acted as a catalyst for the stock. The truck business will be sold for $160 million to Volvo Construction Equipment.

Going forward this year, Terex is expected to benefit from its actions undertaken in the third quarter to further adjust the cost structure of the Materials Handling & Port Solutions (MHPS) and the Cranes and Construction segments. In the near term, the strong backlog in the MHPS segment will aid results.

Other Stocks to Consider

Terex retains a short-term Zacks Rank #2 (Buy). Some other stocks worth considering in the sector include Alamo Group, Inc. (ALG - Snapshot Report), Kubota Corporation (KUBTY) and H&E Equipment Services Inc. (HEES - Snapshot Report). While Alamo and Kubota hold a Zacks Rank #1 (Strong Buy), H&E Equipment Services Inc. holds a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.58 +8.53%
CENTURY ALU… CENX 26.37 +5.76%
BANCO DO BR… BDORY 16.39 +5.54%
TESLA MOTOR… TSLA 282.57 +4.88%
WILLDAN GRO… WLDN 11.20 +4.19%