Latest news with #TEX
Yahoo
23-06-2025
- Business
- Yahoo
Terex Corporation (TEX): A Bull Case Theory
We came across a bullish thesis on Terex Corporation on Value Don't Lie's Substack. In this article, we will summarize the bull's thesis on TEX. Terex Corporation's share was trading at $45.39 as of 19th June. TEX's trailing and forward P/E ratios were 12.37 and 9.35, respectively, according to Yahoo Finance. A large construction project with cranes and forklifts in action, demonstrating the company's building materials business. Terex Corp (TEX), a capital goods manufacturer serving sectors like construction, utilities, mining, and waste management, trades at 9.4x earnings and 8x EBITDA levels that may reflect trough-year assumptions rather than long-term potential. Despite a flat share price since 2021, TEX's core segments—Materials Processing (MP) and Aerial Work Platforms (AWP)—hold top market positions but are undergoing a cyclical correction following supernormal COVID-era demand. Backlogs and earnings are reverting to 2018–2019 levels, suggesting a bottoming out in 2025. A transformative event for TEX was its $2 billion debt-funded acquisition of Dover's Environmental Solutions Group (ESG) in late 2024. ESG is the market leader in refuse collection and compaction equipment and adds a higher-quality, less cyclical profile to the portfolio. With 20%+ EBITDA margins, consistent organic growth, and strong aftermarket and digital revenue streams, ESG provides a potential uplift to Terex's overall business quality. The acquisition is significant relative to TEX's $3 billion market cap and could make or break shareholder returns over the next few years. For 2025, guidance implies $660 million EBITDA and $4.70–$5.10 EPS, while free cash flow is expected at $300–350 million, translating to a modest 9.4x P/E and FCF multiple, below the 10-year median of 11.2x. Assuming 2025 marks a cyclical low and 2026 targets of $740 million EBITDA and $5.76 EPS are hit, shares could be worth $63–66 versus $46 today. While the risk/reward appears tilted favorably for a cyclical recovery, execution on ESG integration and macro timing remain critical for upside to materialize. Previously, we covered a on Terex Corporation by Quick Value in June 2025, which highlighted the company's undervaluation, cyclical earnings trough, and the transformative ESG acquisition funded by debt. The company's stock price has depreciated by approximately 0.2% since our coverage. This is because the thesis hasn't played out yet due to soft macro conditions. Value Don't Lie shares an identical view but emphasizes ESG integration as the key swing factor. Terex Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held TEX at the end of the first quarter, which was 33 in the previous quarter. While we acknowledge the risk and potential of TEX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
3 Unpopular Stocks Facing Headwinds
Wall Street's bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth. Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company's long-term prospects. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals. Consensus Price Target: $24.13 (8.1% implied return) Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions. Why Do We Think Twice About LAUR? Demand for its offerings was relatively low as its number of enrolled students has underwhelmed Flat earnings per share over the last five years underperformed the sector average Underwhelming 7.6% return on capital reflects management's difficulties in finding profitable growth opportunities Laureate Education's stock price of $22.31 implies a valuation ratio of 14.9x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it's free). Consensus Price Target: $49.32 (7.2% implied return) With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials. Why Is TEX Not Exciting? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Earnings per share have contracted by 16.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance Free cash flow margin dropped by 6.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up Terex is trading at $46.01 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including TEX in your portfolio, it's free. Consensus Price Target: $209.89 (4.2% implied return) Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries. Why Are We Wary of LECO? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Projected sales growth of 2.1% for the next 12 months suggests sluggish demand Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.4% annually At $201.44 per share, Lincoln Electric trades at 21.4x forward P/E. If you're considering LECO for your portfolio, see our FREE research report to learn more. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Bark, Matthews, Terex, Alta, and Montrose Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Toys and Electronics company Bark (NYSE:BARK) jumped 7.4%. Is now the time to buy Bark? Access our full analysis report here, it's free. Specialized Consumer Services company Matthews (NASDAQ:MATW) jumped 5.7%. Is now the time to buy Matthews? Access our full analysis report here, it's free. Construction Machinery company Terex (NYSE:TEX) jumped 5.6%. Is now the time to buy Terex? Access our full analysis report here, it's free. Specialty Equipment Distributors company Alta (NYSE:ALTG) jumped 6.6%. Is now the time to buy Alta? Access our full analysis report here, it's free. Waste Management company Montrose (NYSE:MEG) jumped 5.5%. Is now the time to buy Montrose? Access our full analysis report here, it's free. Bark's shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 20.4% on the news that the company reported weak first-quarter 2024 results and provided weak guidance. Specifically, revenue and adjusted EBITDA guidance for the upcoming quarter and the full year came in below expectations. Revenue was also underwhelming during the quarter, down 3.6% year on year. The weakness was attributed to "fewer total orders in the most recent period, largely related to the Company carrying fewer BarkBox and Super Chewer subscriptions into the quarter." The weakness mostly affected the Direct to Consumer (DTC) segment. On the other hand, Commerce revenue rose 20.9% year-over-year. Overall, this was a weaker quarter for BARK. Bark is down 31.2% since the beginning of the year, and at $1.30 per share, it is trading 45.8% below its 52-week high of $2.40 from December 2024. Investors who bought $1,000 worth of Bark's shares at the IPO in December 2020 would now be looking at an investment worth $104.84. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
27-05-2025
- Business
- Yahoo
Bark, Matthews, Terex, Alta, and Montrose Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Toys and Electronics company Bark (NYSE:BARK) jumped 7.4%. Is now the time to buy Bark? Access our full analysis report here, it's free. Specialized Consumer Services company Matthews (NASDAQ:MATW) jumped 5.7%. Is now the time to buy Matthews? Access our full analysis report here, it's free. Construction Machinery company Terex (NYSE:TEX) jumped 5.6%. Is now the time to buy Terex? Access our full analysis report here, it's free. Specialty Equipment Distributors company Alta (NYSE:ALTG) jumped 6.6%. Is now the time to buy Alta? Access our full analysis report here, it's free. Waste Management company Montrose (NYSE:MEG) jumped 5.5%. Is now the time to buy Montrose? Access our full analysis report here, it's free. Bark's shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 20.4% on the news that the company reported weak first-quarter 2024 results and provided weak guidance. Specifically, revenue and adjusted EBITDA guidance for the upcoming quarter and the full year came in below expectations. Revenue was also underwhelming during the quarter, down 3.6% year on year. The weakness was attributed to "fewer total orders in the most recent period, largely related to the Company carrying fewer BarkBox and Super Chewer subscriptions into the quarter." The weakness mostly affected the Direct to Consumer (DTC) segment. On the other hand, Commerce revenue rose 20.9% year-over-year. Overall, this was a weaker quarter for BARK. Bark is down 31.2% since the beginning of the year, and at $1.30 per share, it is trading 45.8% below its 52-week high of $2.40 from December 2024. Investors who bought $1,000 worth of Bark's shares at the IPO in December 2020 would now be looking at an investment worth $104.84. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
1 Momentum Stock with Impressive Fundamentals and 2 to Approach with Caution
The stocks featured in this article are seeing some big returns. Over the past month, they've outpaced the market due to new product launches, positive news, or even a dedicated social media following. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much. One-Month Return: +7.4% Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing. Why Are We Out on NWSA? Products and services aren't resonating with the market as its revenue declined by 1.4% annually over the last five years Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment Underwhelming 6.3% return on capital reflects management's difficulties in finding profitable growth opportunities News Corp's stock price of $28.22 implies a valuation ratio of 31.6x forward P/E. Dive into our free research report to see why there are better opportunities than NWSA. One-Month Return: +32.2% With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials. Why Are We Hesitant About TEX? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Earnings per share have dipped by 16.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term 6.1 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $46.65 per share, Terex trades at 9.6x forward P/E. Check out our free in-depth research report to learn more about why TEX doesn't pass our bar. One-Month Return: +29.7% Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service. Why Are We Backing NOW? Sales pipeline is in good shape as its current remaining performance obligations (cRPO) averaged 22.3% growth over the last year Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 12.9%, and its rise over the last year was fueled by some leverage on its fixed costs NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders ServiceNow is trading at $1,037 per share, or 16x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
