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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.60 right now. For comparison, its industry sports an average P/E of 13.66. Over the past year, 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 should also note that TEX holds a PEG ratio of 0.51. 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 PEG compares to its industry's average PEG of 1.08. Over the past 52 weeks, TEX's PEG has been as high as 0.65 and as low as 0.36, with a median of 0.48.
Investors should also recognize that TEX has a P/B ratio of 2.71. The P/B ratio pits a stock's market value against 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 5.82. Within the past 52 weeks, TEX's P/B has been as high as 3.45 and as low as 1.73, with a median of 2.30.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TEX has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.83.
Finally, we should also recognize that TEX has a P/CF ratio of 7.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TEX's current P/CF looks attractive when compared to its industry's average P/CF of 9.51. Within the past 12 months, TEX's P/CF has been as high as 9.65 and as low as 5.62, with a median of 7.49.
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.
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Is Terex (TEX) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.60 right now. For comparison, its industry sports an average P/E of 13.66. Over the past year, 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 should also note that TEX holds a PEG ratio of 0.51. 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 PEG compares to its industry's average PEG of 1.08. Over the past 52 weeks, TEX's PEG has been as high as 0.65 and as low as 0.36, with a median of 0.48.
Investors should also recognize that TEX has a P/B ratio of 2.71. The P/B ratio pits a stock's market value against 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 5.82. Within the past 52 weeks, TEX's P/B has been as high as 3.45 and as low as 1.73, with a median of 2.30.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TEX has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.83.
Finally, we should also recognize that TEX has a P/CF ratio of 7.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TEX's current P/CF looks attractive when compared to its industry's average P/CF of 9.51. Within the past 12 months, TEX's P/CF has been as high as 9.65 and as low as 5.62, with a median of 7.49.
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.