Should Value Investors Buy Titan Machinery (TITN) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Titan Machinery (TITN). TITN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for TITN is its P/B ratio of 1.66. 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. TITN's current P/B looks attractive when compared to its industry's average P/B of 2.73. Over the past year, TITN's P/B has been as high as 2.05 and as low as 0.93, with a median of 1.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TITN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.5.
These are only a few of the key metrics included in Titan Machinery's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TITN looks like an impressive value stock at the moment.
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Titan Machinery Inc. (TITN): Free Stock Analysis Report
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