Ternium S.A. (TX) Is a Raging Bull You Don’t Want to Mess With!

Wall Street’s most bullish Ternium S.A. (NYSE:TX) analysts are predicting the share price to blow past $45 per share during the next 12 months. The current median share price forecast by them is $34, suggesting that the stock could increase 37.88% in that time frame. The average price target of $34.5 calls for a nearly 39.9% increase in the stock price.

Advisors Inner Circle Fund-Acadian Emerging Markets Port revealed as top hedge fund owner in Ternium S.A. (TX) with a stake of over 476,492 TX shares as of October 30, with a market value of approx. $15.17M as of today. The second largest holder, Mexico Fund Inc, with 320000 shares which equates to $11.6M worth of the stock. At third is Goldman Sachs Emerging Markets Equity Insights Fund, which stood pat with 234300 shares, a 0.17% position in Ternium S.A., worth $8.49M. The insider holding in stood at 0.1% while institutions hold 19.7%.

Ternium S.A. (NYSE:TX) rose 0.78% in recent trade and currently has a stock-market value of $4.94B. The shares finished at $24.66, after trading as low as $24.24 earlier in the session. It hit an intraday high Wednesday at $24.8. Trading activity significantly weakened as the volume at ready counter decreased to 388,920 shares versus 391,720 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 330,825 shares. The stock is now 4.14% above against its bear-market low of $23.68 on May 01, 2019. It has retreated -68.9% since it’s 52-week high of $41.65 reached in May. Now the market price is down -37.88% on the year and down -9% YTD.

TX stock’s 50 day simple moving average (SMA 50) price is $26.83 and its 200-day simple moving average (SMA 200) price is $29.04. The company’s stock currently has a total float of 198.51M shares. Its weekly volatility is hovering around 2.54% and felt 3.04% volatility in price over a month. On the upside, the share price will test short term resistance at around $24.89. On a downside, the stock is likely to find some support, which begins at $24.33. The failure to get near-term support could push it to $24.01.

It had seen a negative analyst call from JP Morgan, which downgraded the stock from Overweight to Neutral on May 06. Analysts at Credit Suisse, shed their positive views on February 28 by lowering it fromOutperform to Neutral. Analysts at Goldman, made their first call about the stock on December 13, recommending it is Buy. Credit Suisse analysts came out with bullish views on May 15 when the call was made. They think the stock is now Outperform compared to to their prior call for Neutral.

When looking at valuations, Ternium S.A. (TX) has a cheap P/E of 3.49x as compared to industry average of 10.98x. Moreover, it trades for 5.46 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.74x price/book and 0.43x price/sales. It’s also very liquid in the near term, with a current ratio of 2.2. The stock has a debt/capital of 0.3.

Shares of TX have gained 2.2% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Ternium S.A. (NYSE:TX) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. TX last reported earnings that receded expectations. The company raked in $1.11 per share, 184.62% change on the same period last year. That was worse than consensus for $1.11. Revenue for the recent quarter stood at $2.74 billion, down -8% on last year and above the $2.71 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.52 billion to $2.98 billion, which should be compared with $2.43 billion generated last year. EPS is seen in a range of $0.09 to $1.49, against the $0.85 reported a year ago.