TX Should I Buy
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Ternium SA (TX) is not a strong buy for a beginner investor with a long-term strategy at this time. The stock is currently oversold, as indicated by the RSI, but the negative financial performance, lack of positive trading signals, and mixed analyst ratings suggest caution. While there is potential for a short-term rebound, the long-term outlook is clouded by declining revenues, net income, and EPS, alongside concerns about oversupply in the steel market.
The stock is in an oversold territory with RSI_6 at 12.084. The MACD histogram is negative (-0.582) and expanding downward, indicating bearish momentum. Moving averages are converging, suggesting a lack of clear trend direction. The current price ($39.07) is near the S1 support level ($39.65), with further support at $38.383.
The stock is oversold, which could lead to a short-term technical rebound. Gross margin increased by 37.81% YoY in the latest quarter.
Revenue, net income, and EPS all declined significantly in the latest quarter. Analysts have mixed ratings, with Wells Fargo lowering the price target to $33 and maintaining an Underweight rating. Concerns about oversupply from China persist, impacting long-term growth prospects.
In Q4 2025, revenue dropped by -2.61% YoY to $3.775 billion. Net income fell sharply by -56.58% YoY to $122 million, and EPS dropped by -57.14% YoY to $0.06. However, gross margin improved to 16%, up 37.81% YoY.
Analyst ratings are mixed. JPMorgan raised the price target to $44 with an Overweight rating, while Wells Fargo lowered the target to $33 with an Underweight rating. UBS raised the target to $39 but maintained a Neutral rating.
