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Is Titan Machinery (TITN) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Machinery (TITN). TITN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for TITN is its P/B ratio of 0.70. The P/B ratio pits a stock's market value against 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 1.50. Over the past 12 months, TITN's P/B has been as high as 1.37 and as low as 0.46, with a median of 0.82.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TITN has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.28.

Finally, investors will want to recognize that TITN has a P/CF ratio of 5.43. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TITN's P/CF has been as high as 11.65 and as low as 3.73, with a median of 7.30.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Titan Machinery is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TITN feels like a great value stock at the moment.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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