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Titan Machinery (TITN) Soars 7%: Is Further Upside Left in the Stock?

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Titan Machinery (TITN - Free Report) shares soared 7% in the last trading session to close at $28.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.

Titan Machinery’s shares have gained in anticipation of improved results as the company gears up to report fourth-quarter fiscal 2021 (ended Jan 31, 2021) results on Mar 18, 2021.  Improving agriculture market fundamentals, including higher corn and soybean prices, farm income as well as construction demand aided by low interest rates, are likely to translate into higher revenues. The market anticipates higher revenues, which along with the company’s ongoing success in its efforts to control operating expenses and drive down interest expense, will lead to improved earnings as well.

Price and Consensus

Price Consensus Chart for Titan Machinery

This agriculture and construction equipment seller is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +750%. Revenues are expected to be $377.35 million, up 7.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Titan Machinery, the consensus EPS estimate for the quarter has been revised 13.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TITN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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