The recent downturn has taken Terex Corporation shares close to a medium term support level around 40.92 USD. The timing for a long trade in the stock appears good.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● The opinion of analysts covering the stock has improved over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company is not the most generous with respect to shareholders' compensation.
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Terex Corporation is focused on manufacturing of materials processing machinery and aerial work platforms. The Company designs, builds and supports products used in maintenance, manufacturing, energy, recycling, minerals and materials management, and construction applications. The Companyâs segments include Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services and markets materials processing and specialty equipment, including crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and their related components and replacement parts. The AWP segment designs, manufactures, services and markets aerial work platform equipment, utility equipment and telehandlers. It markets aerial work platform products principally under the Terex and Genie brand names.