Terex (TEX, $31.50) jumps +3%, as firm crushes Q4 earnings estimate
Terex Corp.’s shares climbed +3% on Monday, after the company reported fourth quarter earnings that edged past Wall Street estimates.
The manufacturer of utility trucks and tower cranes raked in earnings of 51 cents per share in the fourth quarter, beating Zacks consensus estimate of 46 cents a share. The earnings per share was also higher from the year-ago quarter's figure, by a solid + 55%.
The company’s revenue for the quarter increased +16% year-over-year to touch $1.23 billion – which is higher than analysts’ estimate of $1.2 billion (based on Zacks survey of analysts). A major driver of growth was material processing equipment whose sales surged +20%. Sales of aerial work platforms, such as bucket trucks, increased +19.4%. Those of crane sales rose +12.4%.
For the full-year 2018, Terex's operating income was $208.6 million (or $2.71 per share), higher than 2017’s $128.4 million (or $1.35 per share).
Momentum Indicator for TEX turns positive, indicating new upward trend
TEX saw its Momentum Indicator move above the 0 level on October 28, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where TEX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
TEX moved above its 50-day moving average on October 25, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEX crossed bullishly above the 50-day moving average on October 16, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TEX advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for TEX turned negative on October 24, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TEX broke above its upper Bollinger Band on October 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.528) is normal, around the industry mean (2.115). P/E Ratio (8.347) is within average values for comparable stocks, (25.104). Projected Growth (PEG Ratio) (0.989) is also within normal values, averaging (2.737). Dividend Yield (0.010) settles around the average of (0.055) among similar stocks. P/S Ratio (0.837) is also within normal values, averaging (122.471).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TEX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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