Terex (TEX) Strong On High Relative Volume Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Terex ( TEX) as a strong on high relative volume 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 $55.7 million.
  • TEX has traded 144,933 shares today.
  • TEX is trading at 2.02 times the normal volume for the stock at this time of day.
  • TEX is trading at a new high 5.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 0.7%. TEX has a PE ratio of 12.4. Currently there are 8 analysts that rate Terex a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Terex has been 2.1 million shares per day over the past 30 days. Terex has a market cap of $3.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 3.43 and a short float of 7.2% with 4.09 days to cover. Shares are down 32.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Terex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • TEX's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 177.40% to $92.10 million when compared to the same quarter last year. In addition, TEREX CORP has also vastly surpassed the industry average cash flow growth rate of -21.77%.
  • The debt-to-equity ratio is somewhat low, currently at 0.84, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
  • TEREX CORP's earnings per share declined by 30.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEREX CORP increased its bottom line by earning $1.79 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($2.31 versus $1.79).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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