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Investors Business Daily
Investors Business Daily
Business
INVESTOR'S BUSINESS DAILY and JAMES DETAR

Terex Stock Doubled In 18 Months. This Big Gear Maker Is One To Watch.

Heavy equipment maker Terex saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, rising from 69 to 73, though it fell back to a 70 RS Rating at the end of the day. But its surging profit and sales numbers are really what make this stock one to watch. Terex stock eased fractionally Tuesday amid a market pullback.

Over the last four quarters, Terex reported revenue growth of 23%, 23%, 30% and 15%. Over that same period its earnings popped 63%, 116%, 120% and 46%.

Terex Stock Nearing Benchmark

The 73 RS Rating shows that Caterpillar-rival Terex stock outpaces 73% of all stocks for price performance. It's nearing a benchmark. Market research shows that the best-performing stocks typically have an 80 or better RS Rating in the early stages of their moves.

Looking For Winning Stocks? Try This Simple Routine

Terex stock dropped to a 26.64 low at the beginning of July 2022, then turned up. It's more than doubled in the 18 months since then and closed at 56.81 Tuesday.

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% higher than normal. Note that it's a third-stage base. Later-stage patterns can work, but are less likely to lead to a breakout.

Among its other key ratings, Terex stock has a strong 91 Composite Rating, and an outstanding 94 Earnings Per Share Rating.

Fundamentals Strong; Funds Taking Notice

Its B- Accumulation/Distribution Rating shows that big funds are buying more shares than selling. And its A SMR Rating (sales + profit margins + return on equity) reflects excellent fundamentals.

Terex stock earns the No. 2 rank among its peers in the five-stock Machinery-Construction/Mining industry group. Caterpillar is No. 1 and Manitowoc is No. 3 among the group's highest-rated stocks.

When looking for the best stocks to buy and watch, check out relative price strength, a good indicator of rising stocks.

The unique IBD Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matched up against all other stocks.

Please follow James DeTar on X, formerly known as Twitter, @JimDeTar 

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