Terex is forming a double-bottom base with an entry at 65.64, as seen in IBD MarketSmith chart analysis. Today's selection for IBD 50 Stocks To Watch, the growth stock has gained nearly 50% so far this year and has trumped the S&P 500's 18% gain.
Shares of the growth stock are paring some gains on Tuesday in light volume but remain above the 50-day moving average.
Strong fundamentals support this year's mighty gain. Earnings per share surged 116% in the first quarter and 120% in the second quarter. For its second quarter, Terex saw sales grow 30% to $1.4 billion while earnings per share of $2.35 surged 120%.
In July, the company raised its quarterly dividend by 13% to 17 cents per share. That followed an earlier increase of 15% in February.
In the first quarter, sales grew 23% to $1.2 billion. But earnings ballooned 116% to $1.60 per share. The stock jumped nearly 5% the day after the results were released.
The company also raised its full-year sales outlook to $5.1 billion from a $4.9 billion midpoint outlook. Wall Street sees earnings growing 62% to $7 per share, in line with the company's updated guidance, up from an earlier forecast of $5.60-$6.
The stock has a perfect Composite Rating of 99 and an EPS Rating of 91. The Relative Strength Rating is 94. Sales and earnings growth have been steady over the past seven quarters.
Mutual funds own 61% of the stock. More funds have been buying the growth stock over the past four quarters, according to IBD MarketSmith. The Accumulation/Distribution Rating of B- shows a good level of interest from fund managers.
Growth Stock Ranks Second In Group
TEX stock ranks second in the construction machinery industry group. It makes heavy machinery and aerial platforms used by building, infrastructure and utility companies, among others.
The company operates two segments: Its aerial work platform business makes lifts, trailer-mounted articulating booms, scissor lifts and related accessories under the brand names Terex and Genie.
The materials processing segment makes crushes, washing systems, pick and carry cranes, tower cranes, concrete mixer trucks and concrete pavers, conveyors and parts under the brand names Terex, Powerscreen, Fuchs and others. Terex equipment is also used in mining and quarrying.
The Invesco S&P Midcap Value With Momentum ETF and the SPDR S&P MidCap 400 ETF Trust hold shares of Terex.
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