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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Titan International is a stock many investors are watching right now. TWI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.35 right now. For comparison, its industry sports an average P/E of 14.90. Over the past 52 weeks, TWI's Forward P/E has been as high as 18.63 and as low as 5.13, with a median of 9.63.
Another notable valuation metric for TWI is its P/B ratio of 2.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TWI's current P/B looks attractive when compared to its industry's average P/B of 4.86. Within the past 52 weeks, TWI's P/B has been as high as 5 and as low as 2.38, with a median of 3.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.44. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that TWI has a P/CF ratio of 4.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TWI's P/CF compares to its industry's average P/CF of 12.08. Over the past 52 weeks, TWI's P/CF has been as high as 12.45 and as low as 3.73, with a median of 7.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Titan International is likely undervalued currently. And when considering the strength of its earnings outlook, TWI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Titan International (TWI) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Titan International is a stock many investors are watching right now. TWI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.35 right now. For comparison, its industry sports an average P/E of 14.90. Over the past 52 weeks, TWI's Forward P/E has been as high as 18.63 and as low as 5.13, with a median of 9.63.
Another notable valuation metric for TWI is its P/B ratio of 2.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TWI's current P/B looks attractive when compared to its industry's average P/B of 4.86. Within the past 52 weeks, TWI's P/B has been as high as 5 and as low as 2.38, with a median of 3.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.44. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that TWI has a P/CF ratio of 4.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TWI's P/CF compares to its industry's average P/CF of 12.08. Over the past 52 weeks, TWI's P/CF has been as high as 12.45 and as low as 3.73, with a median of 7.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Titan International is likely undervalued currently. And when considering the strength of its earnings outlook, TWI sticks out at as one of the market's strongest value stocks.