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Terex (TEX) Dips More Than Broader Markets: What You Should Know

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Terex (TEX - Free Report) closed at $43.93 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the machinery products maker had gained 8.39% over the past month. This has outpaced the Industrial Products sector's gain of 2.34% and the S&P 500's gain of 3.11% in that time.

Terex will be looking to display strength as it nears its next earnings release. In that report, analysts expect Terex to post earnings of $0.55 per share. This would mark year-over-year growth of 161.9%. Our most recent consensus estimate is calling for quarterly revenue of $947.93 million, up 20.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $3.85 billion. These totals would mark changes of +2053.85% and +25.02%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Terex. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Terex is currently a Zacks Rank #3 (Hold).

Digging into valuation, Terex currently has a Forward P/E ratio of 15.85. This valuation marks a discount compared to its industry's average Forward P/E of 24.74.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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