Could This Manufacturing Giant Make Even More Outsized Moves?

Is there still more upside potential left for this infrastructure stock?

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Terex Corporation (NYSE:TEX) is a global manufacturer of lifting and material processing products and services. The company operates in two business segments: Aerial Work Platforms and Materials Processing. Terex provides solutions to a broad range of industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries. This afternoon, TEX is trading up 0.04% at  $47.64.

Terex stock has increased by about 178% year-over-year, with TEX bottoming at a more than eight-year low of $17.19 last July. Additionally, shares of TEX have grown by 38% year-to-date, but are currently down by 15% since reaching a 12-year high of $55.60 back in May. Terex stock also has a forward dividend of $0.48 and a dividend yield of 1.02%. 

Taking a quick pulse on TEX's earnings history, Terex has outperformed earnings expectations on all four of the company's most earnings reports. Despite dipping into negative earnings territory in Q2 of last year and experiencing a drop in earnings per share (EPS) for Q4 of last year, Terex continued to post earnings beat after earnings beat. Right now, analysts are optimistic about the company reporting a significantly increased EPS for Q2 of 2021.

Now seems to be a prime time to weigh in on TEX's next move with options, as the equity's Schaeffer's Volatility Index (SVI) of 40% sits in the 10th percentile of the past 12 months. This means option traders are pricing in relatively low volatility expectations at the moment.


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