Are Investors Undervaluing Titan International (TWI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Titan International (TWI). TWI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.98, while its industry has an average P/E of 10.84. TWI's Forward P/E has been as high as 8.07 and as low as 4.59, with a median of 6.44, all within the past year.
Another valuation metric that we should highlight is TWI's P/B ratio of 1.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.48. Within the past 52 weeks, TWI's P/B has been as high as 3.05 and as low as 1.41, with a median of 1.75.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TWI has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.74.
Finally, investors should note that TWI has a P/CF ratio of 3.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.50. TWI's P/CF has been as high as 4.96 and as low as 2.66, with a median of 4.10, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Titan International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TWI feels like a great value stock at the moment.
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Titan International, Inc. (TWI) : Free Stock Analysis Report
