Deere and Terex Reviewed by StockCall: Machinery Stocks Get Demand Boost

   Deere and Terex Reviewed by StockCall: Machinery Stocks Get Demand Boost

  PR Newswire

  LONDON, January 31, 2013

LONDON, January 31, 2013 /PRNewswire/ --

Machinery industry has been one of the biggest beneficiaries of recent
occurrences in the general economy. A recent Commerce Department report showed
increased demand for industrial goods. Machinery manufacturers also received a
positive surprise in the form of increased write-off limits. Under a new
legislation, companies are now allowed to write-off up to $500,000 in new
asset purchases. This will help the machinery manufacturers in optimizing
their tax liability. New regulations about the farm subsidies are expected to
have an impact on the performance of agriculture equipment companies like
Deere & Co. (NYSE: DE), while Terex Corp. (NYSE: TEX) benefits from
improvement in construction activities. StockCall has initiated an in-depth
technical review on Deere and Terex. Sign up for the free reports at 

Deere to Capture Foreign Markets

Deere & Co. is betting on improvement in the farming sector. The company
expects its agricultural equipment revenue to increase by 4 percent. Deere is
scheduled to report its earnings on February 11 ^th . The company generally
provides conservative estimates and over delivers. Deere is expected to report
its EPS at $1.39 per share. With the improvement in farming sector, the stock
is anticipated to perform well this year. However, it has seen quite a run-up
in the past six months and at the current price point, it looks to be fairly
priced. Since the company has strong fundamentals, any pullback from current
levels will provide an interesting opportunity to initiate a position in the
stock. Register with us today and access our free report on Deere at 

Deere is also banking on international expansion. The company seeks to obtain
50 percent of its revenue from overseas markets by year 2018. Deere has
invested heavily in China and Brazil and has set up manufacturing bases in
these countries. Deere is also planning to increase its focus on the
construction business.

Terex on the Bull Run

Terex Corp. [ Free Technical Analysis Report on TEX ] ^(1) stock had been
hitting new 52-week highs lately. The company has seen its margins improved
and the impact is clearly visible on its stock price. Better margins have also
helped the company to neutralize the effect of stagnant sales. Terex lacks the
scales of Caterpillar and Deere but it is steadily matching up to their
margins. The company commands a market capitalization of $3.65 billion,
Caterpillar and Deere sports $63 billion and $36 billion in market cap
respectively. Due to its smaller size, Terex has its unique set of issues
operating in a capital intensive industry. The stock trades at Price/Earnings
ratio of 27, making it an expensive stock to own, whereas Caterpillar sports
single digit P/E ratio of 9.9.

Terex recently revamped its top management and the changes are likely to push
it in a new direction. Its stock is also gaining insider's favor as its Senior
Vice President, Douglas Friesen recently snapped up a bunch of shares at the
average price of $29.44. Insider purchases are generally considered a good
omen for a company. Terex is expected to reap benefits of recent uptick in
non-residential construction work around the globe. The company has boosted
its top-line and bottom-line considerably in the previous financial year and
the trend is likely to continue. However, the company is maintaining
conservative stance and expect the activities to pick up meaningfully during
the latter half of this year.


1.Terex Corp. Technical Analysis [ ]

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