Terex (TEX) Stock: Unpacking Fair Value and Recent Momentum

Terex stock: event driven snapshot for investors Terex (TEX) is back on watch for many investors after recent trading left the shares at $60.39, with returns of 11.9% over the past month and 9.6% over the past 3 months. That recent 11.9% 1 month share price return and 9.6% 3 month share price return sits alongside a 29.9% 1 year total shareholder return and 65.8% 5 year total shareholder return. This suggests that momentum has been building over time despite short term pullbacks. If Terex has caught your eye, this can be a good moment to see what else is moving and compare it with . With Terex trading at $60.39, sitting below the average analyst price target and with an indicated intrinsic discount, the key question is simple: is the stock still underappreciated, or is the market already pricing in future growth? Most Popular Narrative: 1.3% Undervalued The most followed narrative puts Terex's fair value at about US$61.20, just above the last close at US$60.39. This keeps the valuation debate very tight. The analysts have a consensus price target of $55.2 for Terex based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $73.0, and the most bearish reporting a price target of just $38.0. Want to see what kind of revenue path, margin rebuild, and future P/E multiple this narrative leans on? The assumptions behind that fair value may surprise you. On top of that, the fair value model is built using a 10.19% discount rate and assumes mid single digit annual revenue growth with higher profit margins and a future earnings multiple above where pure current earnings might place it. Together, those inputs are what pull the fair value line so close to the current share price and leave only a small modeled discount. Result: Fair Value of $61.20 (UNDERVALUED) However, higher tariff related costs and uncertainty around the planned REV Group merger could quickly change how investors view that small modeled discount. Build Your Own Terex Narrative If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in just a few minutes by starting with . A great starting point for your Terex research is our analysis highlighting that could impact your investment decision. Looking for more investment ideas? Terex might be on your radar, but you will miss plenty of potential opportunities if you stop here. Let the data guide you to your next idea. Spot potential value candidates early by scanning that trade at prices not fully reflecting their underlying cash flows. Ride the momentum in cutting edge automation and machine learning by checking out shaping the next wave of technology. Target higher income potential by reviewing that offer yields above 3% and may suit a returns focused portfolio. 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.