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On Aug 18, we issued an updated research report on Terex Corporation (TEX - Free Report) , a global equipment manufacturer. The company is set to benefit from progress on capital allocation strategy. Also its focus on portfolio restructuring and cost-saving initiatives is likely to boost results in the near term.

Notably, Terex fulfilled its commitment to focus on three core segments and continues to simplify the company by implementing footprint and cost-restructuring plans. In fact, it has already closed the sales of its loader backhoe business in the United Kingdom and India.

Furthermore, the company simplified manufacturing footprint by completing the closure of its Cranes facility in Jinan, China. In Germany, Terex signed a contract to sell its manufacturing location in Bierbach and reached agreement with the Works Council, which provides the flexibility to implement the remainder of the Cranes Germany restructuring program.

In fact, Terex’s Cranes segment returned to profitability in the second quarter 2017, led by the benefits from restructuring action and the company expects this trend to continue. Its Materials Processing segment is also progressing well.

Meanwhile, the company’s commercial excellence initiative continues to make progress. It remains focused on enhancing performance management tools and improving process discipline in sales pipeline and account management. In addition, the combination of higher utilization and recovering rates is positively influencing its customers' capital expenditure decisions for 2017.

Further, its disciplined capital allocation strategy that includes efficient return of capital to shareholders through share repurchases are expected to drive growth.

It should be noted that Terex has outperformed the industry in the last year. While shares of the company have gained 56.7%, the industry registered an addition of 35.4% in the same period.

Currently, the company sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the industrial product space include Caterpillar Inc. (CAT - Free Report) , Komatsu Ltd. (KMTUY - Free Report) and AGCO Corp. (AGCO - Free Report) carrying the same bullish rank as Terex. You can see the complete list of today's Zacks #1 Rank stocks here.

Caterpillar has an expected long-term growth of 9.50%.

Komatsu has an expected long-term growth of 6.20%.

AGCO has expected long-term growth of 13.51%.

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