5-Star Stocks Poised to Pop: Titan Machinery

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agricultural and construction equipment retailer Titan Machinery (NAS: TITN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Titan's business and see what CAPS investors are saying about the stock right now.

Titan facts

Headquarters (Founded)

West Fargo, N.D. (1980)

Market Cap

$384.8 million

Industry

Specialty retailer

Trailing-12-Month Revenue

$1.31 billion

Management

Founder/Chairman/CEO David Meyer

CFO Mark Kalvoda

Return on Equity (Average, Past 3 Years)

10.1%

Cash/Debt

$102.2 million / $530.6 million

Competitors

Caterpillar (NYS: CAT)

CNH Global (NYS: CNH)

Deere (NYS: DE)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 466 members who have rated Titan believe the stock will outperform the S&P 500 going forward. These bulls include Keekers44 and NHWeston.

Just last month, Keekers44 tapped Titan's recent pullback as a potent buying opportunity:

This company was destroyed by the market with its recent earnings report. The report was actually good. Knee Jerk reaction by market.

In fact, Titan currently trades at a particularly paltry price-to-sales of 0.3. That's a discount to much larger competitors like Caterpillar (1.0), CNH (0.4), and Deere (0.9).

CAPS member NHWeston elaborates on the bargain opportunity:

Titan is a mini-[Caterpillar], involved in construction machinery and services. Or, if you prefer, it's a little Deere, working in agriculture, irrigation, and forestry. Focused in the Mid-West, Titan has most recently bought up several smaller versions of itself like St. Joseph's. At the same time, the company has been adding to its bottomline through flood clean-up support, an area neglected by the major companies it otherwise mirrors. Trading at its low range, it could grow a good 40 percent or get bought up by a rival interested in some of its specialty mechanics.

What do you think about Titan, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackTitan?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement