Barron's: Terex poised for growth as big construction projects get underway

|About: Terex Corporation (TEX)|By:, SA News Editor

Terex (TEX +3.4%) shares could rise up to 30% over the next year, according to a weekend report in Barron’s, which cited four major factors offering strong investment potential.

A pickup in big construction jobs - office buildings, hospitals, schools, etc. - which tends to lag behind a home-building recovery by about two years, now seems afoot, which should be good news for TEX and other heavy-metal specialists.

TEX is poised to benefit from efficiency moves; years of acquisitions have left it with, for example, more than 70 accounting departments worldwide, a number management says it can reduce to eight.

TEX also has amassed a full suite of automated products for stacking and unloading cargo on giant ships - a good business to be in, because the Panama Canal is getting a major capacity increase over the next two years.

Finally, TEX shares are cheap, trading at 13.8x this year's earnings forecast vs. Caterpillar (NYSE:CAT), which trades at 16.4x.