Is There Now An Opportunity In Terex Corporation (NYSE:TEX)?

Terex Corporation (NYSE:TEX), might not be a large cap stock, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Terex’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Terex

What Is Terex Worth?

Good news, investors! Terex is still a bargain right now. According to my valuation, the intrinsic value for the stock is $85.59, but it is currently trading at US$58.39 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Terex’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Terex look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 3.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Terex, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since TEX is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TEX for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TEX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Terex, you'd also look into what risks it is currently facing. For example - Terex has 1 warning sign we think you should be aware of.

If you are no longer interested in Terex, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.