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Why the Market Dipped But Terex (TEX) Gained Today

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The latest trading session saw Terex (TEX - Free Report) ending at $62.65, denoting a +1.18% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.42%.

The machinery products maker's stock has climbed by 14.35% in the past month, exceeding the Industrial Products sector's gain of 5.84% and the S&P 500's gain of 2.67%.

Analysts and investors alike will be keeping a close eye on the performance of Terex in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.33, showcasing a 16.88% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.23 billion, reflecting a 0.65% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.94 per share and a revenue of $5.17 billion, indicating changes of -1.7% and +0.31%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Terex. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. Terex currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Terex currently has a Forward P/E ratio of 8.92. This denotes a discount relative to the industry's average Forward P/E of 10.42.

It is also worth noting that TEX currently has a PEG ratio of 0.62. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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