Terex (TEX) shares soared 7.1% in the last trading session to close at $63.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.5% gain over the past four weeks.
Terex Corporation has completed its merger with REV Group, creating a leading specialty equipment manufacturer with a diversified and complementary portfolio. The combined entity benefits from lower capital intensity, an attractive leverage profile, and strong free cash flow. The combination is expected to generate $75 million in run-rate synergies by 2028. Of this, 50% is to be realized within the next 12 months.
This machinery products maker is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $1.33 billion, up 6.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Terex, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 part of the Zacks Manufacturing - Construction and Mining industry. Hyster-Yale (HY), another stock in the same industry, closed the last trading session 2.7% higher at $34.81. HY has returned 7% in the past month.
For Hyster-Yale, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.2. This represents a change of -181.6% from what the company reported a year ago. Hyster-Yale currently has a Zacks Rank of #3 (Hold).
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Terex Corporation (TEX): Free Stock Analysis Report Hyster-Yale, Inc. (HY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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