Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, construction equipment maker Terex (NYSE:TEX) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Terex's business, and see what CAPS investors are saying about the stock right now.

Terex facts

   

Headquarters (Founded)

Westport, Connecticut (1925)

Market Cap

$4.68 billion

Industry

Farm and Construction Machinery

TTM Revenue

$10.08 billion

Management

CEO Ronald DeFeo (since 1995)

COO Thomas Riordan (since 2007)

Return on Equity (avg. last three yrs.)

26.6%

Major Competitors

Caterpillar (NYSE:CAT)

Deere (NYSE:DE)

CAPS members bullish on TEX also bullish on

General Electric (NYSE:GE)

Freeport-McMoRan Copper & Gold (NYSE:FCX)

CAPS members bearish on TEX also bearish on

Manitowoc (NYSE:MTW)

ConocoPhillips (NYSE:COP)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 356 of 363 of the All-Star members who have rated Terex -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include ww2004 and TMFDeej, both of whom are ranked in the top 10% of our community.

In April, ww2004 noted that Terex "is another global infrastructure, mining and material processing equipment play. Terex has good earnings and growth with a low P/E. I like the recent insider purchases."

A more recent pitch from TMFDeej late last month follows that bullish line of thinking, expanding on the stock's bargain-like valuation:

The manufacturer of construction and mining equipment has been firing on all cylinders lately. It's earnings were up 40% last quarter and its EPS ($2.32) beat analysts' estimates by a whopping $0.32. That's some amazing growth for a company that is currently trading at an estimated seven times its 2008 earnings.

What do you think about Terex, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.