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Is Titan Machinery (TITN) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Titan Machinery (TITN - Free Report) is a stock many investors are watching right now. TITN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

We should also highlight that TITN has a P/B ratio of 1.19. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.50. Over the past 12 months, TITN's P/B has been as high as 1.23 and as low as 0.46, with a median of 0.77.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TITN has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.39.

Finally, we should also recognize that TITN has a P/CF ratio of 9.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TITN's P/CF has been as high as 9.47 and as low as 3.73, with a median of 6.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Titan Machinery is likely undervalued currently. And when considering the strength of its earnings outlook, TITN sticks out at as one of the market's strongest value stocks.


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