Titan International, Inc. (NYSE:TWI), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$9.22 and falling to the lows of US$6.27. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Titan International's current trading price of US$6.35 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Titan International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What's The Opportunity In Titan International?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 14.65% above our intrinsic value, which means if you buy Titan International today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $5.54, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Titan International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Check out our latest analysis for Titan International

Can we expect growth from Titan International?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 0.9% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Titan International.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TWI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on TWI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Titan International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.