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Here's Why You Should Hold Titan International (TWI) Stock Now
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Titan International, Inc. is benefiting from solid demand and robust segmental performances. Rising agricultural commodity prices and the consequent improvement in farmer income, plus the need to replace old equipment are expected to support the Agricultural segment’s performance. TWI will also gain from the ramp-up in infrastructure spending in the United States.
TWI currently has a Zacks Rank #3 (Hold) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upbeat Outlook: Titan International expects 2022 sales to be $2.2 billion TWI had reported sales of $1.78 billion in 2021. Management anticipates adjusted EBITDA to range between $240 million and $250 million for the year compared with $135 million in 2021. Overall, the year 2022 is emerging as the strongest year in TWI’s history. This positive momentum is expected to continue in 2023 as well.
Positive Growth Expectations: The Zacks Consensus Estimate for 2022 earnings stands at $2.19, which suggests a surge of 158% from the 2021 figure. The same for 2023 stands at $2.30, indicating growth of 5.2% from the prior-year tally.
Impressive Surprise History: TWI has a trailing four-quarter earnings surprise of 47%, on average.
Solid ROE: TWI’s superior return on equity (ROE) is indicative of its growth potential. Titan International’s ROE currently stands at 47.8%, higher than the industry’s 33.1%. This indicates efficiency in using shareholders’ funds and the ability to generate profit with minimum capital usage.
Strong Demand in Markets
Titan International’s Agricultural segment continues benefiting from increased commodity prices, improved farmer income, replacement demand of an aging large equipment fleet and lower equipment inventory levels. The Consumer segment is steadily witnessing higher volumes in relation to general market improvements. Recovery in construction markets has been driving the Earthmoving/Construction segment’s performance for a while. The ramp-up in infrastructure spending in the United States is expected to act as a significant catalyst in the days ahead.
Pricing actions undertaken to offset rising raw material costs and savings from productivity improvements across all production facilities are expected to contribute to TWI’s earnings growth.
Price Performance
Image Source: Zacks Investment Research
Titan International’s stock has surged 89.9% in a year’s time against the industry’s growth of 4.9%.
Stocks to Consider
Some better-ranked stocks in the Industrial Products sector are Tenaris (TS - Free Report) , CECO Environmental and W.W. Grainger Inc. (GWW - Free Report) . While TS flaunts a Zacks Rank #1, CECE and GWW carry a Zacks Rank #2 at present.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. Earnings estimates have increased 8% for fiscal 2022 in the past 60 days. The TS stock has risen 27% in the past year.
CECO Environmental delivered a trailing four-quarter earnings surprise of 29.1%, on average. Earnings estimates have increased 17% for fiscal 2022 in the past 60 days. The CECE stock has gained 38% in the past year.
Grainger’s earnings surprise in the last four quarters was 7.9%, on average. In the past 60 days, GWW’s earnings estimates have increased 4% for 2022. The stock has gained 19.7% in the past year.
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Here's Why You Should Hold Titan International (TWI) Stock Now
Titan International, Inc. is benefiting from solid demand and robust segmental performances. Rising agricultural commodity prices and the consequent improvement in farmer income, plus the need to replace old equipment are expected to support the Agricultural segment’s performance. TWI will also gain from the ramp-up in infrastructure spending in the United States.
TWI currently has a Zacks Rank #3 (Hold) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upbeat Outlook: Titan International expects 2022 sales to be $2.2 billion TWI had reported sales of $1.78 billion in 2021. Management anticipates adjusted EBITDA to range between $240 million and $250 million for the year compared with $135 million in 2021. Overall, the year 2022 is emerging as the strongest year in TWI’s history. This positive momentum is expected to continue in 2023 as well.
Positive Growth Expectations: The Zacks Consensus Estimate for 2022 earnings stands at $2.19, which suggests a surge of 158% from the 2021 figure. The same for 2023 stands at $2.30, indicating growth of 5.2% from the prior-year tally.
Impressive Surprise History: TWI has a trailing four-quarter earnings surprise of 47%, on average.
Solid ROE: TWI’s superior return on equity (ROE) is indicative of its growth potential. Titan International’s ROE currently stands at 47.8%, higher than the industry’s 33.1%. This indicates efficiency in using shareholders’ funds and the ability to generate profit with minimum capital usage.
Strong Demand in Markets
Titan International’s Agricultural segment continues benefiting from increased commodity prices, improved farmer income, replacement demand of an aging large equipment fleet and lower equipment inventory levels. The Consumer segment is steadily witnessing higher volumes in relation to general market improvements. Recovery in construction markets has been driving the Earthmoving/Construction segment’s performance for a while. The ramp-up in infrastructure spending in the United States is expected to act as a significant catalyst in the days ahead.
Pricing actions undertaken to offset rising raw material costs and savings from productivity improvements across all production facilities are expected to contribute to TWI’s earnings growth.
Price Performance
Image Source: Zacks Investment Research
Titan International’s stock has surged 89.9% in a year’s time against the industry’s growth of 4.9%.
Stocks to Consider
Some better-ranked stocks in the Industrial Products sector are Tenaris (TS - Free Report) , CECO Environmental and W.W. Grainger Inc. (GWW - Free Report) . While TS flaunts a Zacks Rank #1, CECE and GWW carry a Zacks Rank #2 at present.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. Earnings estimates have increased 8% for fiscal 2022 in the past 60 days. The TS stock has risen 27% in the past year.
CECO Environmental delivered a trailing four-quarter earnings surprise of 29.1%, on average. Earnings estimates have increased 17% for fiscal 2022 in the past 60 days. The CECE stock has gained 38% in the past year.
Grainger’s earnings surprise in the last four quarters was 7.9%, on average. In the past 60 days, GWW’s earnings estimates have increased 4% for 2022. The stock has gained 19.7% in the past year.