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Is Titan Machinery (TITN) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Titan Machinery (TITN) is a stock many investors are watching right now. TITN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for TITN is its P/B ratio of 1.61. 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. TITN's current P/B looks attractive when compared to its industry's average P/B of 2.44. Over the past year, TITN's P/B has been as high as 1.73 and as low as 0.54, with a median of 1.

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. TITN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.5.

Value investors will likely look at more than just these metrics, but the above data helps show that Titan Machinery is likely undervalued currently. And when considering the strength of its earnings outlook, TITN sticks out at as one of the market's strongest value stocks.


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