Terex Corp (TEX): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Terex ( TEX) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Terex fell 31 cents (-1.3%) to $24.06 on light volume. Throughout the day, 2.8 million shares of Terex exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $23.76-$24.40 after having opened the day at $24.24 as compared to the previous trading day's close of $24.37. Other companies within the Industrial Goods sector that declined today were: A123 Systems ( AONE), down 10.5%, Highpower International ( HPJ), down 7.8%, Ecotality ( ECTY), down 7.3%, and Louisiana-Pacific ( LPX), down 6.1%.
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Terex Corporation manufactures capital goods machinery products worldwide. Terex has a market cap of $2.82 billion and is part of the industrial industry. The company has a P/E ratio of 20.6, above the average industrial industry P/E ratio of 20 and above the S&P 500 P/E ratio of 17.7. Shares are up 80.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Terex a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Terex as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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