The Case for and Against Terex Corporation (TEX)

Terex Corporation (NYSE:TEX) is an interesting player in the Industrial Goods space, with a focus on Farm & Construction Machinery. The stock has been active on the tape, currently trading at $31.38, up from yesterday’s close by -2.09%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Terex Corporation (TEX) currently trades with a market capitalization of $3.32B. That value represents a market adjusting for revenues that have been falling by -15.90% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For TEX, the company currently has $248.80M of cash on the books, which is offset by $1.66B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $487.88M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -0.06 on a per share basis this quarter. Perhaps, that suggests something about why 89.30% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Terex Corporation recorded a 52-week high of 33.17. It is now trading 1.12 off that level. The stock is trading 31.46 its 50-day moving average by -0.59. The stock carved out a 52-week low down at 13.62.

In recent action, Terex Corporation (TEX) has made a move of -5.05% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 85.63, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 101.64M with 5.59% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of TEX.

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