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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Terex (TEX - Free Report) is a stock many investors are watching right now. TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.05, which compares to its industry's average of 15.89. Over the last 12 months, TEX's Forward P/E has been as high as 12.24 and as low as 6.36, with a median of 8.38.
Investors will also notice that TEX has a PEG ratio of 0.64. 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. TEX's PEG compares to its industry's average PEG of 1.26. Over the last 12 months, TEX's PEG has been as high as 0.65 and as low as 0.36, with a median of 0.48.
Another valuation metric that we should highlight is TEX's P/B ratio of 3.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TEX's current P/B looks attractive when compared to its industry's average P/B of 6.74. Over the past year, TEX's P/B has been as high as 3.45 and as low as 1.73, with a median of 2.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.89. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that TEX has a P/CF ratio of 9.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.02. Over the past 52 weeks, TEX's P/CF has been as high as 9.65 and as low as 5.62, with a median of 7.49.
These are only a few of the key metrics included in Terex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TEX looks like an impressive value stock at the moment.
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Is Terex (TEX) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Terex (TEX - Free Report) is a stock many investors are watching right now. TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.05, which compares to its industry's average of 15.89. Over the last 12 months, TEX's Forward P/E has been as high as 12.24 and as low as 6.36, with a median of 8.38.
Investors will also notice that TEX has a PEG ratio of 0.64. 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. TEX's PEG compares to its industry's average PEG of 1.26. Over the last 12 months, TEX's PEG has been as high as 0.65 and as low as 0.36, with a median of 0.48.
Another valuation metric that we should highlight is TEX's P/B ratio of 3.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TEX's current P/B looks attractive when compared to its industry's average P/B of 6.74. Over the past year, TEX's P/B has been as high as 3.45 and as low as 1.73, with a median of 2.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.89. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that TEX has a P/CF ratio of 9.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.02. Over the past 52 weeks, TEX's P/CF has been as high as 9.65 and as low as 5.62, with a median of 7.49.
These are only a few of the key metrics included in Terex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TEX looks like an impressive value stock at the moment.