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Terex's Latest $300M Share Buyback Plan to Boost Returns

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In a bid to enhance shareholders' value, Terex Corporation (TEX - Free Report) has announced a new $300-million share-buyback plan. This move is in sync with the company’s disciplined capital-allocation strategy. Following the news, the company’s shares inched up 1.3% during Thursday’s trading session.

In December 2016, Terex had announced a disciplined capital-allocation strategy to repurchase shares worth $1-$1.5 billion through 2020. The company has returned $1.25 billion to shareholders since then, which is at the mid-point of its targeted range.

It repurchased 5 million shares for $205 million in first-quarter 2018. Backed by Terex's capital-market actions and operational improvements, the company raised its 2018 adjusted EPS guidance to $2.70-$3.00.

In another development, Terex has announced a quarterly dividend of 10 cents per share. The dividend is to be paid on Sep 19, to all stockholders of record as on Aug 9, 2018.

Moreover, Terex is poised to gain from its continued focus on Execute to Win strategy. In order to simplify the company’s operations, it also remains focused on improving performance and meeting the rising customer demand.

However, Terex has outperformed its industry with respect to price performance over the past year mainly due to concerns in the company’s Cranes segment. The stock has gained around 13%, while the industry recorded growth of 27% during the same time frame.

Zacks Rank & Stocks to Consider

Currently, Terex carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Actuant Corporation (ATU - Free Report) , DMC Global Inc. (BOOM - Free Report) and Chart Industries, Inc. (GTLS - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Actuant has a long-term earnings growth rate of 15.6%. Its shares have rallied 12% over the past year.

DMC Global has a long-term earnings growth rate of 20%. The company’s shares have appreciated a whopping 257% in the past year.

Chart Industries has a long-term earnings growth rate of 26.9%. The stock has surged 85% in a year’s time.

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