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Terex (TEX) Moves 6.1% Higher: Will This Strength Last?

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Terex (TEX - Free Report) shares rallied 6.1% in the last trading session to close at $29.58. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.3% loss over the past four weeks.

Terex’s shares have gained on robust bookings and backlog across its segments as well as strong customer demand. The company’s consistent focus on price hikes and cost reductions to offset inflationary pressures is driving margins.

TEX’s Aerial Work Platforms segment is gaining from solid global demand for fleet replacement while its Material Processing segment is riding on robust end-market demand across minerals processing, material handling and lifting.

This machinery products maker is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -15.7%. Revenues are expected to be $1.08 billion, up 3.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Terex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Terex is a member of the Zacks Manufacturing - Construction and Mining industry. One other stock in the same industry, Caterpillar (CAT - Free Report) , finished the last trading session 3.8% higher at $185.49. CAT has returned -16.1% over the past month.

For Caterpillar, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.99. This represents a change of +15% from what the company reported a year ago. Caterpillar currently has a Zacks Rank of #3 (Hold).


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