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Why You Should Add Terex (TEX) Stock to Your Portfolio Now
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Terex Corporation (TEX - Free Report) looks promising at the moment as it is gaining from strong demand and improved volumes. The company has a solid backlog level, which positions it well for improved results in the coming quarters.
Terex is progressing well on its “Execute, Innovate, Grow" strategy. In sync with this, the company has been investing in innovative products, digital innovation, the expansion of manufacturing facilities and acquisitions. This is likely to further drive its results.
Terex has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper and analyze the factors that make this stock an attractive choice for investors right now.
Price Performance: Terex's shares have gained 104.1% over the past year compared with the industry’s growth of 36%.
Image Source: Zacks Investment Research
Solid Q1 Performance: In the first quarter of 2023, TEX reported adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.05. The bottom line surged 116% from the prior-year quarter, courtesy of strong demand and a healthy backlog.
Upbeat FY23 Outlook: Backed by strong performance in the first quarter, Terex raised its 2023 outlook. The company expects earnings per share between $5.60 and $6.00, up from the previously envisioned $4.60-$5.00.
The company expects sales between $4.8 billion and $5 billion compared with the previously stated $4.6-$4.8 billion.
Upbeat Growth Projections: The Zacks Consensus Estimate for the company’s 2023 earnings has moved 22% upward over the past 60 days and is pegged at $5.96 per share. It suggests growth of 38% from the year-ago reported figure.
The consensus mark for fiscal 2024 earnings stands at $6.06 per share, indicating a year-over-year improvement of 1.8%. The Zacks Consensus Estimate has moved up 17% over the past 60 days.
The favorable estimate revisions instill investors’ confidence in the stock.
Strong Backlog Levels: Terex’s backlog has shown year-over-year improvement over the past nine quarters and reached a solid $4.1 billion at the end of the first quarter of 2023. Both segments witnessed improvements in backlog over the said time frame.
Robust backlog and strong end-market demand are expected to support its top-line performance. Increased spending from the Infrastructure Bill is expected to be a major catalyst for Terex going forward.
Impressive Growth Strategy: 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.
The “Innovate” theme seeks to continuously develop its product offerings and apply technology. The company has invested in connected assets and digital capabilities to better serve customers.
The “Grow” aspect focuses on increasing inorganic investments and adding scope through acquisitions.
Terex is focused on aligning production and cost structure across its segments in response to the customer demand environment, while also aggressively managing costs and working capital.
Hubbell has an average trailing four-quarter earnings surprise of 21%. The Zacks Consensus Estimate for HUBB’s fiscal 2023 earnings is pegged at $13.81 per share. The consensus estimate for 2023 earnings has moved north by 22.5% in the past 60 days. Its shares have gained 86.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north over the past 60 days. MTW’s shares have gained 71.5% in the last year.
The Zacks Consensus Estimate for Grainger’s 2023 earnings per share is pegged at $35.83, up 7.6% in the past 60 days. It has a trailing four-quarter average earnings surprise of 9.1%. GWW has gained 65% in the last year.
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Why You Should Add Terex (TEX) Stock to Your Portfolio Now
Terex Corporation (TEX - Free Report) looks promising at the moment as it is gaining from strong demand and improved volumes. The company has a solid backlog level, which positions it well for improved results in the coming quarters.
Terex is progressing well on its “Execute, Innovate, Grow" strategy. In sync with this, the company has been investing in innovative products, digital innovation, the expansion of manufacturing facilities and acquisitions. This is likely to further drive its results.
Terex has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper and analyze the factors that make this stock an attractive choice for investors right now.
Price Performance: Terex's shares have gained 104.1% over the past year compared with the industry’s growth of 36%.
Image Source: Zacks Investment Research
Solid Q1 Performance: In the first quarter of 2023, TEX reported adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.05. The bottom line surged 116% from the prior-year quarter, courtesy of strong demand and a healthy backlog.
Upbeat FY23 Outlook: Backed by strong performance in the first quarter, Terex raised its 2023 outlook. The company expects earnings per share between $5.60 and $6.00, up from the previously envisioned $4.60-$5.00.
The company expects sales between $4.8 billion and $5 billion compared with the previously stated $4.6-$4.8 billion.
Upbeat Growth Projections: The Zacks Consensus Estimate for the company’s 2023 earnings has moved 22% upward over the past 60 days and is pegged at $5.96 per share. It suggests growth of 38% from the year-ago reported figure.
The consensus mark for fiscal 2024 earnings stands at $6.06 per share, indicating a year-over-year improvement of 1.8%. The Zacks Consensus Estimate has moved up 17% over the past 60 days.
The favorable estimate revisions instill investors’ confidence in the stock.
Strong Backlog Levels: Terex’s backlog has shown year-over-year improvement over the past nine quarters and reached a solid $4.1 billion at the end of the first quarter of 2023. Both segments witnessed improvements in backlog over the said time frame.
Robust backlog and strong end-market demand are expected to support its top-line performance. Increased spending from the Infrastructure Bill is expected to be a major catalyst for Terex going forward.
Impressive Growth Strategy: 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.
The “Innovate” theme seeks to continuously develop its product offerings and apply technology. The company has invested in connected assets and digital capabilities to better serve customers.
The “Grow” aspect focuses on increasing inorganic investments and adding scope through acquisitions.
Terex is focused on aligning production and cost structure across its segments in response to the customer demand environment, while also aggressively managing costs and working capital.
Other Stocks to Consider
Some other top-ranked stocks from the Industrial Products sector are Hubbell Incorporated (HUBB - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) and W.W. Grainger, Inc. (GWW - Free Report) . HUBB and MTW flaunt a Zacks Rank #1 at present while GWW carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hubbell has an average trailing four-quarter earnings surprise of 21%. The Zacks Consensus Estimate for HUBB’s fiscal 2023 earnings is pegged at $13.81 per share. The consensus estimate for 2023 earnings has moved north by 22.5% in the past 60 days. Its shares have gained 86.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north over the past 60 days. MTW’s shares have gained 71.5% in the last year.
The Zacks Consensus Estimate for Grainger’s 2023 earnings per share is pegged at $35.83, up 7.6% in the past 60 days. It has a trailing four-quarter average earnings surprise of 9.1%. GWW has gained 65% in the last year.