Shares of Titan International have been strong performers lately, with the stock up 9.5% over the past month. The stock hit a new 52-week high of $9.41 in the previous session. Titan International has gained 75.5% since the start of the year compared to the 35% move for the Zacks Industrial Products sector and the 38.8% return for the Zacks Manufacturing - Farm Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 4, 2021, Titan International reported EPS of $-0.1 versus consensus estimate of $-0.22.
For the current fiscal year, Titan International is expected to post earnings of $-0.02 per share on $1.47 billion in revenues. This represents a 97.98% change in EPS on a 16.71% change in revenues. For the next fiscal year, the company is expected to earn $0.32 per share on $1.63 billion in revenues. This represents a year-over-year change of 1700% and 11.1%, respectively.
Valuation Metrics
Titan International may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Titan International has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Titan International currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Titan International fits the bill. Thus, it seems as though Titan International shares could still be poised for more gains ahead.
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Titan International (TWI) Hits Fresh High: Is There Still Room to Run?
Shares of Titan International have been strong performers lately, with the stock up 9.5% over the past month. The stock hit a new 52-week high of $9.41 in the previous session. Titan International has gained 75.5% since the start of the year compared to the 35% move for the Zacks Industrial Products sector and the 38.8% return for the Zacks Manufacturing - Farm Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 4, 2021, Titan International reported EPS of $-0.1 versus consensus estimate of $-0.22.
For the current fiscal year, Titan International is expected to post earnings of $-0.02 per share on $1.47 billion in revenues. This represents a 97.98% change in EPS on a 16.71% change in revenues. For the next fiscal year, the company is expected to earn $0.32 per share on $1.63 billion in revenues. This represents a year-over-year change of 1700% and 11.1%, respectively.
Valuation Metrics
Titan International may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Titan International has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Titan International currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Titan International fits the bill. Thus, it seems as though Titan International shares could still be poised for more gains ahead.