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Titan Machinery (TITN) Stock Sinks As Market Gains: What You Should Know

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Titan Machinery (TITN - Free Report) closed the most recent trading day at $28.77, moving -1.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%.

Coming into today, shares of the agriculture and construction equipment seller had lost 10.18% in the past month. In that same time, the Retail-Wholesale sector gained 1.33%, while the S&P 500 gained 3%.

Wall Street will be looking for positivity from TITN as it approaches its next earnings report date. In that report, analysts expect TITN to post earnings of $0.44 per share. This would mark year-over-year growth of 51.72%. Our most recent consensus estimate is calling for quarterly revenue of $364.5 million, up 20.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.67 per share and revenue of $1.6 billion. These totals would mark changes of +32.54% and +13.47%, respectively, from last year.

Any recent changes to analyst estimates for TITN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TITN is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note TITN's current valuation metrics, including its Forward P/E ratio of 17.53. Its industry sports an average Forward P/E of 10.3, so we one might conclude that TITN is trading at a premium comparatively.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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