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

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.6% since the latest earnings results.

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. This print exceeded analysts’ expectations by 4.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.

Terex achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.6% since reporting and currently trades at $45.23.

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

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, falling short of analysts’ expectations by 6.9%. The business performed better than its peers, but it was unfortunately a slower quarter, leaving some shareholders hoping for more.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $33.22.

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

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, exceeding analysts’ expectations by 1.6%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 11.4% since the results and currently trades at $9.20.

Read our full analysis of Manitowoc’s results here.

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. This print came in 0.8% below analysts' expectations. Overall, it was a softer quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.

The stock is down 6.2% since reporting and currently trades at $363.83.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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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