Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Manitowoc (NYSE: MTW) and its peers.

Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.

The 4 construction machinery stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.

Weakest Q3: Manitowoc (NYSE: MTW)

Contracted by the United States Navy during WWII, Manitowoc (NYSE: MTW) provides cranes and lifting equipment.

Manitowoc reported revenues of $524.8 million, flat year on year. This print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

Manitowoc scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 2.4% since reporting and currently trades at $10.63.

Read our full report on Manitowoc here, it’s free.

Best Q3: Terex (NYSE: TEX)

With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.

Terex reported revenues of $1.21 billion, down 6.1% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.

Terex delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $54.27.

Is now the time to buy Terex? Access our full analysis of the earnings results here, it’s free.

Caterpillar (NYSE: CAT)

With its iconic yellow machinery working on construction sites, Caterpillar (NYSE: CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Caterpillar reported revenues of $16.11 billion, down 4.2% year on year, falling short of analysts’ expectations by 0.8%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 4.3% since the results and currently trades at $404.31.

Read our full analysis of Caterpillar’s results here.

Astec (NASDAQ: ASTE)

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Astec reported revenues of $291.4 million, down 3.9% year on year. This result lagged analysts' expectations by 6.9%. Overall, it was a slower quarter for the company.

Astec had the weakest performance against analyst estimates among its peers. The stock is up 15% since reporting and currently trades at $38.34.

Read our full, actionable report on Astec here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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