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Titan International Inc.

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Titan International Inc. (TWI - Free Report) started out the year on fire, posting record results in Q1 in what is expected to be a strong year. Yet investors have been selling the shares since May, making this Zacks #1 Rank (Strong Buy) a bargain with a forward P/E of 7.9.

Titan manufactures wheels, tires and assemblies for big equipment makers in agriculture, construction, and mining sectors as well as for consumers for all-terrain vehicles.

Titan Crushed The Consensus In Q1

On Apr 25, Titan did not disappoint. It reported first quarter results which blew by the Zacks Consensus Estimate by 50%. Earnings per share were 78 cents compared to the consensus of 52 cents. It was the third beat in the last four quarters.

Sales soared 65% to a record $463.1 million from $280.8 million a year ago. It was boosted by the 2011 acquisition of the Goodyear Latin American farm tire business which had sales of $90.3 million in the quarter.

Strong demand also continued in the agriculture and earthmoving/construction segments.

Business Expected To Remain Strong

Over the last 6 months, Titan's CEO, Maurice Taylor, has been outspoken about how great business has been for the company.

"Titan’s mining service business is a hot market. We have just opened a facility in the oil sands in Canada and already are receiving the demand to double the facility," he said.

"Our partner in the oils sands is Saskatoon Wholesale Tire and they have never seen anything like this. In order to meet demand, all of Titan’s factories will be hiring and expanding operations," he added.

Zacks Consensus Estimate for 2012 Is Still Rising

In the last month, 1 estimate has been revised higher for 2012, pushing the Zacks Consensus Estimate up another 6 cents to $2.58 per share.

Check out the nice upward trajectory of the consensus estimates in the last few years. This is exactly what you want to see the consensus estimates look like. It is moving higher and to the right.

This is huge earnings growth of 70.6% over 2011 wherein the company made just $1.51.

Tons of Value

Shares have taken a sharp dive in the last 6 weeks. This has created an opportunity for investors looking to get a value stock that also has growth.

In addition to a P/E under 10, Titan has other solid value fundamentals.

It has a price-to-book ratio of just 1.9. A P/B ratio under 3.0 is the cut-off I use for value.

Titan also has a price-to-sales ratio of 0.5. A P/S ratio under 1.0 usually indicates a company is undervalued.

On top of value, Titan also has a 1-year return on equity (ROE) of 25.2%. That is much higher than the average of the S&P 500 at 12.6%.

With the stock sell-off, value investors might want to take a second look at Titan.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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