If the numbers for construction and mining equipment maker Terex are any indication, the economy is doing all right. On Wednesday, the Relative Strength Rating for Terex stock climbed to 74, up from 69.
The construction, infrastructure, mining and shipping/transportation industries all rely on companies like Terex to provide the equipment they need to get the job done. Terex has reported earnings growth ranging from 46% to 120% over the past four quarters. That's based on quarterly revenue growth ranging from 15% to 30% over that time period.
The Relative Strength Rating upgrade means that Terex stock tops 74% of all stocks for price performance over the past year. Its stock is within a few points of a key benchmark. The best stocks often have an RS Rating north of 80 as they launch their largest runs. See if Terex can continue to show renewed price strength and clear that threshold.
On Dec. 14 Terex stock shot up nearly 11% after the company announced that, for the second year in a row, it was named to Newsweek's 2024 Most Responsible Companies List. Terex noted that it recently published its 2023 Sustainability Report.
Terex Stock Ratings Strong
The company said in a news release that the report illustrates "the Company's commitment to sustainability, especially as it relates to product innovation and customer solutions, team member and community engagement, and responsible operations."
Among its other ratings the equipment maker has an outstanding 94 Earnings Per Share Rating out of 99. The Composite Rating for Terex stock is a strong 89 and it has a best-possible A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale. The A rating reflects its strong fundamentals.
Last quarter, Terex reported a 46% jump in earnings to $1.75 per share on 15% higher sales, at $1.29 billion.
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Terex stock is building a consolidation with a 65.64 buy point. See if the stock can clear the breakout price in volume at least 40% above average. Note that it's a third-stage base. Later-stage patterns can work, but are less likely to succeed because, by that point, the stock has already made a significant run.
Terex stock was down fractionally Wednesday afternoon to 58.94.
No. 2 In Construction/Mining Equipment
Terex stock earns the No. 2 rank among its peers in the Machinery-Construction/Mining industry group. Big brother Caterpillar ,with about $67 billion annual sales, is No. 1 in the group, and Manitowoc is No. 3 among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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