Trade-Ideas LLC identified

Terex

(

TEX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Terex as such a stock due to the following factors:

  • TEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.5 million.
  • TEX has traded 583,610 shares today.
  • TEX is down 3.1% today.
  • TEX was up 11.5% yesterday.

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More details on TEX:

Terex Corporation operates as a lifting and material handling solutions company. The stock currently has a dividend yield of 1.6%. TEX has a PE ratio of 8. Currently there are 6 analysts that rate Terex a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Terex has been 1.6 million shares per day over the past 30 days. Terex has a market cap of $2.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.33 and a short float of 4.5% with 1.20 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Terex as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.

Highlights from the ratings report include:

  • Despite the weak revenue results, TEX has outperformed against the industry average of 21.7%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.00, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.93 is weak.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Machinery industry and the overall market, TEREX CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $28.20 million or 69.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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