On September 10, 2026, Terex Corp TEX shares fell 3.6% to a current price of $59.64, experiencing a 52-week trading range between $41.70 and $74.69. This recent decline forms part of a broader downtrend, given a 1-month decrease of 9.9% and a 1-week drop of 5.0%.
- GF Valueâ„¢ verdict: Current price is $59.64, compared to GF Value of $53.66, indicating the stock is 11.1% overvalued.
- GF Scoreâ„¢: 91/100, which reflects strong overall performance.
- Most notable signal: Insider activity shows net selling of $2.3M over the past year.
Is TEX Overvalued or Undervalued?
The current price of Terex Corp TEX at $59.64 is above the GF Valueâ„¢ estimate of $53.66, suggesting that the stock is overvalued by approximately 11.1%. This overvaluation presents a risk for potential investors, as the current market price exceeds the intrinsic value derived from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is modestly overvalued, which implies that the margin of safety for new investments is limited.
Investors may want to approach this stock with caution, considering these valuation metrics. The risk of overvaluation could lead to potential price corrections if market sentiment shifts or if the company fails to meet growth expectations. Therefore, while there may be some momentum in the stock due to a year-to-date gain of 12.6%, the valuation metrics suggest a more guarded outlook.
How Does TEX's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 30.4x | 10.4x (5-Year Median) |
| Forward P/E | 9.9x | N/A |
The current P/E ratio of 30.4x is significantly above the 5-year median of 10.4x, indicating that the stock is trading at a valuation that is 191% higher than its historical norm. This P/E analysis aligns with the GF Valueâ„¢ verdict of being overvalued, reinforcing the cautionary stance regarding the stock's current price point.
What Does TEX's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ evaluates a company's performance across various dimensions, including financial health, profitability, growth potential, valuation, and momentum. Terex Corp's GF Scoreâ„¢ stands at 91/100, indicating a strong overall performance, with notable strengths in growth and momentum but showing some weaknesses in financial strength.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 91 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 10/10 |
| Valuation | 6/10 |
| Momentum | 10/10 |
The strong growth rank of 10/10 indicates robust potential for future expansion, while the momentum rank also scores highly at 10/10, suggesting positive price trends. However, the lower financial strength rating of 5/10 raises concerns about the company’s ability to sustain its growth and handle financial obligations, which may impact long-term stability.
What Are Gurus and Insiders Doing with TEX?
Currently, 9 gurus hold Terex Corp's stock, with 2 adding to their positions and 9 trimming their holdings in recent quarters. This mixed signal suggests a cautious approach among seasoned investors, as many are reducing their stakes despite some continuing to invest.
In terms of insider activity, over the past 12 months, insiders have bought $0.1M worth of shares while selling $2.4M, resulting in a net selling of $2.3M. This trend of net selling may indicate a lack of confidence from insiders regarding the stock's current valuation or future performance, which could be a red flag for potential investors.
What This Means for Investors
Given the GF Valueâ„¢ assessment indicating that Terex Corp TEX is currently overvalued, alongside the high P/E ratio and mixed signals from insider activity, investors may need to carefully consider the associated risks before making any investment decisions. The current valuation appears to lack a sufficient margin of safety, suggesting that caution is warranted.
For further details, you can visit the Terex Corp TEX stock page and explore additional insights on the GF Valueâ„¢ page.
Frequently Asked Questions
What is TEX's GF Scoreâ„¢?
TEX's GF Scoreâ„¢ is 91/100, indicating a strong overall performance with potential for growth and momentum.
Is TEX overvalued or undervalued?
TEX is currently overvalued with a GF Valueâ„¢ estimate of $53.66, suggesting a risk at the current market price of $59.64.
What is TEX's P/E ratio?
The P/E ratio for TEX is 30.4x, significantly above its 5-year median of 10.4x, indicating a high valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
