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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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), as well as an A grade for Value. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 16.36. Over the last 12 months, TEX's Forward P/E has been as high as 10.65 and as low as 6.09, with a median of 8.23.
Investors should also note that TEX holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEX's industry has an average PEG of 1.46 right now. Over the past 52 weeks, TEX's PEG has been as high as 0.87 and as low as 0.32, with a median of 0.52.
Another notable valuation metric for TEX is its P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.44. TEX's P/B has been as high as 3.11 and as low as 1.97, with a median of 2.51, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TEX has a P/S ratio of 0.83. This compares to its industry's average P/S of 0.95.
Finally, investors should note that TEX has a P/CF ratio of 7.62. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.93. Over the past year, TEX's P/CF has been as high as 10 and as low as 5.61, with a median of 7.55.
These are just a handful of the figures considered in Terex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TEX is an impressive value stock right now.
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Is Terex (TEX) Stock Undervalued 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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), as well as an A grade for Value. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 16.36. Over the last 12 months, TEX's Forward P/E has been as high as 10.65 and as low as 6.09, with a median of 8.23.
Investors should also note that TEX holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEX's industry has an average PEG of 1.46 right now. Over the past 52 weeks, TEX's PEG has been as high as 0.87 and as low as 0.32, with a median of 0.52.
Another notable valuation metric for TEX is its P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.44. TEX's P/B has been as high as 3.11 and as low as 1.97, with a median of 2.51, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TEX has a P/S ratio of 0.83. This compares to its industry's average P/S of 0.95.
Finally, investors should note that TEX has a P/CF ratio of 7.62. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.93. Over the past year, TEX's P/CF has been as high as 10 and as low as 5.61, with a median of 7.55.
These are just a handful of the figures considered in Terex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TEX is an impressive value stock right now.