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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Terex (TEX) Stock Trades Up, Here Is Why

TEX Cover Image

What Happened?

Shares of lifting and material handling equipment company Terex (NYSE: TEX) jumped 3.3% in the morning session after its MAGNA brand, specializing in mobile crushing and screening equipment for large-scale operations, named MMD Mineral Sizing Africa as its official distributor across southern Africa. 

The partnership represented a strong endorsement for Terex, as MMD is a globally respected designer and maker of mineral sizing equipment. This marked the first time MMD agreed to represent a Terex brand. Under the deal, MMD will sell, support, and service MAGNA's full product line in the region. Neil McIlwaine, a Business Line Director for MAGNA, noted that MMD's decision to represent the brand showed that MAGNA's machines met the tough demands of large-scale mining operations and that its commitment to customer support matched theirs.

After the initial pop the shares cooled down to $52.74, up 1.5% from previous close.

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

What Is The Market Telling Us

Terex’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 25 days ago when the stock dropped 4.9% on the news that industry bellwether Caterpillar warned of higher costs related to tariffs, sparking concerns across the heavy-equipment sector. 

Caterpillar, a major player in the industrial machinery space, announced it now expects to incur expenses of $1.5 billion to $1.8 billion from tariffs in 2025, an increase from its previous forecast. The news sent Caterpillar's shares down more than 3% and created a ripple effect among its peers. Investors appear concerned that other companies in the construction and farm equipment industry, including Terex, could face similar pressures from rising costs and potentially sluggish demand due to U.S. trade policies.

Terex is up 18.5% since the beginning of the year, but at $52.74 per share, it is still trading 10% below its 52-week high of $58.61 from November 2024. Investors who bought $1,000 worth of Terex’s shares 5 years ago would now be looking at an investment worth $2,849.

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