(TEX - Get Report) provides a range of construction equipment (such as cranes, aerial lifts and other gear) that helps build roads, buildings and other infrastructure projects. As you can imagine, business was great in the middle of the last decade, but slumped badly when the Great Recession took hold in 2008. Sales fell from $8 billion in 2007 to just $3.9 billion in 2008, leading to an 80% drop in gross profits to $297 million.
Times have surely changed.
>>8 Industrial Stocks With Big Upside Potential
Thanks to two straight quarters that have exceeded consensus profit forecasts by at least 30%, this company is clearly on the mend. Earnings per share are on track to rise roughly 300% to $2 a share this year, and should exceed $2.50 a share in 2013. Meanwhile, after falling from $90 back in 2007 to a recent $20, shares trade for a high single-digit P/E ratio against projected 2013 profits.
Considering EPS exceeded $5 in 2004, 2006 and 2007, the current stock price barely begins to reflect the latent earnings power in this business model.
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