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Terex (TEX) Gains But Lags Market: What You Should Know

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Terex (TEX - Free Report) closed at $42.82 in the latest trading session, marking a +0.21% move from the prior day. The stock lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Heading into today, shares of the machinery products maker had lost 10.1% over the past month, lagging the Industrial Products sector's loss of 3.68% and the S&P 500's loss of 0.91% in that time.

Terex will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.55, up 161.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $947.93 million, up 20.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $3.85 billion, which would represent changes of +2053.85% and +25.02%, respectively, from the prior year.

Any recent changes to analyst estimates for Terex should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Terex is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Terex has a Forward P/E ratio of 15.24 right now. Its industry sports an average Forward P/E of 23.87, so we one might conclude that Terex is trading at a discount comparatively.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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