We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Terex (TEX - Free Report) is a stock many investors are watching right now. TEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.34 right now. For comparison, its industry sports an average P/E of 12.89. Over the past year, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.69.
Investors should also note that TEX holds a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEX's industry has an average PEG of 0.99 right now. Over the last 12 months, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.45.
Another valuation metric that we should highlight is TEX's P/B ratio of 2.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.88. TEX's P/B has been as high as 3.37 and as low as 1.73, with a median of 2.37, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TEX has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.71.
Finally, investors should note that TEX has a P/CF ratio of 8.15. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TEX's P/CF compares to its industry's average P/CF of 8.66. Over the past year, TEX's P/CF has been as high as 15.55 and as low as 6.74, with a median of 9.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Terex is likely undervalued currently. And when considering the strength of its earnings outlook, TEX sticks out at as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Is Terex (TEX) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Terex (TEX - Free Report) is a stock many investors are watching right now. TEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.34 right now. For comparison, its industry sports an average P/E of 12.89. Over the past year, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.69.
Investors should also note that TEX holds a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEX's industry has an average PEG of 0.99 right now. Over the last 12 months, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.45.
Another valuation metric that we should highlight is TEX's P/B ratio of 2.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.88. TEX's P/B has been as high as 3.37 and as low as 1.73, with a median of 2.37, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TEX has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.71.
Finally, investors should note that TEX has a P/CF ratio of 8.15. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TEX's P/CF compares to its industry's average P/CF of 8.66. Over the past year, TEX's P/CF has been as high as 15.55 and as low as 6.74, with a median of 9.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Terex is likely undervalued currently. And when considering the strength of its earnings outlook, TEX sticks out at as one of the market's strongest value stocks.