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Earnings Estimates Rising for Titan International (TWI): Will It Gain?

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  • TWI

Titan International (TWI) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The upward trend in estimate revisions for this wheel and tire supplier reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Titan International, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The company is expected to earn $0.17 per share for the current quarter, which represents a year-over-year change of +270%.

Over the last 30 days, two estimates have moved higher for Titan International compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 57.14%.

Current-Year Estimate Revisions

The company is expected to earn $0.63 per share for the full year, which represents a change of +163.64% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Titan International. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 13.64%.

Favorable Zacks Rank

The promising estimate revisions have helped Titan International earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Titan International have attracted decent investments and pushed the stock 20.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


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