What’s next for Terex stock after an 11% drop in 5 days?

The share price of Terex, a manufacturer of aerial work platforms and materials processing machinery, has fallen 11% in the last five trading days. While there were no company specific announcements, industrials shares as a whole saw a massive sell off last week, with Caterpillar, AGCO and Deere also falling more than 5% in the same time frame. .

Now that Terex stock has fallen 11% in just five days, will it resume its bearish course in the weeks to come, or is a stock rally imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, the average Terex stock returns almost 6% then period of one month (21 trading days) after down 11% compared to the previous week (5 trading days). In addition, given the high vaccination rates in several countries, demand for industrial equipment is expected to rebound sharply, which bodes well for TEX’s stock.

But how would those numbers change if you wanted to hold TEX shares for a shorter or longer period? You can test the answer and many other combinations on the Trefis Machine learning engine to test the chances of Terex shares rising after a fall. You can test the chances of recovery over different time intervals of a quarter, a month, or even a single day!

Some fun scenarios, FAQs and explanation of Terex stock moves:

Question 1: Is the average return on Terex shares higher after a decline?

Reply: Consider two situations,

Case 1: Terex stock drops -5% or more in a week

Case 2: Terex share increases 5% or more in one week

Is the average return on Terex shares higher in the next month after Case 1 or Case 2?

TEX stock fares better after case 2, with an average return of 1.8% during the following month (21 trading days) in case 1 (where the stock has just suffered a loss of 5% during the previous week), against an average return 2% for case 2.

In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days in case 1, and an average return of only 0.5% for case 2, as detailed in our dashboard. which details the average return of the S&P 500 after a fall or rise.

Try the Trefis machine learning engine above to see for yourself how Terex stocks are likely to perform after a specific gain or loss over a period of time.

Question 2: Does patience pay?

Reply: If you buy and hold Terex stock, over time short-term fluctuations are expected to cancel each other out and the long-term positive trend will be in your favor – at least if the company is otherwise strong. .

Overall, according to data and calculations from the machine learning engine Trefis, patience absolutely pays for most actions!

For the TEX share, the returns over the following N days after a variation of -5% over the last 5 trading days are detailed in the table below, as well as the returns of the S & P500:

You can try out the engine to see what this chart looks like for Terex after a larger loss in the past week, month, or quarter.

Question 3: What about the average return after a rise if you wait a while?

Reply: The average return after a rise is naturally lower than that after a fall, as detailed in the previous question. Interestingly, however, if a stock has won in the last few days, you’d better avoid short-term bets for most stocks.

It is powerful enough to test the trend of Terex stocks yourself by changing the entries in the charts above.

Although TEX stock may experience higher levels, 2020 has created many price discontinuities which may provide some interesting trading opportunities. For example, you will be surprised at how counterintuitive stock valuation is to Techne vs Generac Holdings

GNRC
.

See everything Featured analyzes from Trefis and To download Trefis data here

Comments are closed.