Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What:Strong results from Deere (NYS: DE) lifted stocks of other companies specializing in farm and construction equipment and replacement parts. Count Terex (NYS: TEX) among the winners. The stock surged more than 10% before closing up 8.7%.
So what: Several direct peers rallied as well. Manitowoc (NYS: MTW) jumped more than 9% while Caterpillar (NYS: CAT) gained more than 5%. The implication? Deere and Terex aren't likely to be the only benefactors of rising demand for agricultural equipment.
Now what: Numbers speak to the opportunity. A recent estimate from Global Industry Analysts says demand in Asia will rise 7.8% annually from now till 2017, at which point it pegs the entire market will be worth $122.9 billion. Do you trust that projection? Would you buy shares of Terex at current prices? Please weigh in using the comments box below.
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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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