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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 at $27.85 in the latest trading session, marking a -1.45% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the agriculture and construction equipment seller had lost 1.88% in the past month. In that same time, the Retail-Wholesale sector gained 1.91%, while the S&P 500 gained 3.75%.

Investors will be hoping for strength from Titan Machinery as it approaches its next earnings release. On that day, Titan Machinery is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 10.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $406 million, up 8.93% from the year-ago period.

TITN's full-year Zacks Consensus Estimates are calling for earnings of $2.80 per share and revenue of $1.91 billion. These results would represent year-over-year changes of -6.04% and +11.6%, respectively.

Investors might also notice recent changes to analyst estimates for Titan Machinery. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.61% lower. Titan Machinery currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Titan Machinery is holding a Forward P/E ratio of 10.11. Its industry sports an average Forward P/E of 6.24, so we one might conclude that Titan Machinery 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 28, which puts it in the top 12% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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