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In the past year, Terex’s shares have gained 50.2% compared with the industry’s 28.6% growth.
Image Source: Zacks Investment Research
Driving Factors
Terex delivered improvements in the bottom and the top lines in the fourth quarter of 2022, courtesy of strong demand and order growth. Its backlog has shown year-over-year growth for nine consecutive quarters and reached $4.1 billion at the end of the fourth quarter of 2022. Consolidated 2022 bookings remained at healthy levels and were the second-highest booking rate in recent history.
For 2023, Terex expects earnings per share to range between $4.60 and $5.00. The mid-point of the guidance indicates year-over-year growth of 11%. This is expected to be driven by solid demand, pricing and cost-saving actions which will negate the impact of the ongoing supply-chain disruptions and high costs. The company expects sales to be between $4.6 billion and $4.8 billion. TEX reported revenues of $4.4 billion in 2022. Elevated volumes supported by strong customer demand and pricing actions are expected to offset cost pressures.
Terex continues to progress well on its “Execute, Innovate, Grow” strategy. Per the “Execute” theme, the company continues the progress made with its “Execute to Win” by intensifying process discipline and implementing several new operational processes, among other initiatives. Terex has managed to drive its SG&A expenses down to around 10.5% of sales. It has been investing in innovative products, digital innovation, expansion of manufacturing facilities and acquisitions, which will drive growth.
Earnings estimates for Terex have also been going up over the past month. The Zacks Consensus Estimate for 2023 bottom line has increased 13% and the same for 2024 has moved up 8%. The favorable estimate revisions instill investor confidence in the stock.
Other Key Picks
Some other top-ranked stocks from the Industrial Products sector are OI Glass (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS sport a Zacks Rank of 1 at present, and DE has a Zacks Rank of 2.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 71.3% in the past year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $6.04 per share. This indicates a 39.5% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 17% in the past 60 days. Its shares gained 29.7% in the past year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $29.82, suggesting an increase of 28.1% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 4.7%. Its shares have gained 15.9% in the past year.
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Terex (TEX) Stock Scales 52-Week High: What's Driving It?
Shares of Terex Corporation (TEX - Free Report) scaled a new 52-week high of $60.01 on Apr 1, before closing the session a tad lower at $59.99.
TEX has a market capitalization of $4.05 billion and a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past year, Terex’s shares have gained 50.2% compared with the industry’s 28.6% growth.
Image Source: Zacks Investment Research
Driving Factors
Terex delivered improvements in the bottom and the top lines in the fourth quarter of 2022, courtesy of strong demand and order growth. Its backlog has shown year-over-year growth for nine consecutive quarters and reached $4.1 billion at the end of the fourth quarter of 2022. Consolidated 2022 bookings remained at healthy levels and were the second-highest booking rate in recent history.
For 2023, Terex expects earnings per share to range between $4.60 and $5.00. The mid-point of the guidance indicates year-over-year growth of 11%. This is expected to be driven by solid demand, pricing and cost-saving actions which will negate the impact of the ongoing supply-chain disruptions and high costs. The company expects sales to be between $4.6 billion and $4.8 billion. TEX reported revenues of $4.4 billion in 2022. Elevated volumes supported by strong customer demand and pricing actions are expected to offset cost pressures.
Terex continues to progress well on its “Execute, Innovate, Grow” strategy. Per the “Execute” theme, the company continues the progress made with its “Execute to Win” by intensifying process discipline and implementing several new operational processes, among other initiatives. Terex has managed to drive its SG&A expenses down to around 10.5% of sales. It has been investing in innovative products, digital innovation, expansion of manufacturing facilities and acquisitions, which will drive growth.
Earnings estimates for Terex have also been going up over the past month. The Zacks Consensus Estimate for 2023 bottom line has increased 13% and the same for 2024 has moved up 8%. The favorable estimate revisions instill investor confidence in the stock.
Other Key Picks
Some other top-ranked stocks from the Industrial Products sector are OI Glass (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS sport a Zacks Rank of 1 at present, and DE has a Zacks Rank of 2.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 71.3% in the past year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $6.04 per share. This indicates a 39.5% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 17% in the past 60 days. Its shares gained 29.7% in the past year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $29.82, suggesting an increase of 28.1% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 4.7%. Its shares have gained 15.9% in the past year.