Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Titan International (NYSE: TWI ) , an auto parts supplier for off-road agricultural and construction vehicles, are motoring 10% higher today despite no company-specific news.
So what: It's tough to specifically say what could be driving Titan higher today, but I have two potential theories. First, following last week's stock market shelling, Titan is simply rebounding today after it lost 27% of its market value over the previous six trading sessions. Secondly, and I think this feeds off the first theory, stock market indexes are rallying across the board in hopes of finding a resolution to Greece's woes. Anything that signals a potential improvement to global macroeconomic growth is good news for Titan International.
Now what: Titan was already looking like an intriguing opportunity before the market took a dive last week, so I would use this dip as a potential buying opportunity (even with today's rally in mind). Based on current estimates, revenue is projected to grow by 64% this year and earnings estimates have done nothing but move higher. Valued at only eight times forward earnings and with a PEG ratio of 0.42, this is definitely a company worthy of my watchlist.
Craving more input on Titan International? Add it to your watchlist like I am so you can keep up on the latest news from the company.