Shares of Titan Machinery (TITN) have been struggling lately and have lost 5.8% over the past two weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.
While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this agriculture and construction equipment seller is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.
What is a Hammer Chart and How to Trade It?
This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Increases the Odds of a Turnaround for TITN
There has been an upward trend in earnings estimate revisions for TITN lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.
The consensus EPS estimate for the current year has increased 20.2% over the last 30 days. This means that the Wall Street analysts covering TITN are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.
If this is not enough, you should note that TITN currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of Titan Machinery, a Zacks Rank of 1 is a more conclusive fundamental indication of a potential turnaround.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Titan Machinery Inc. (TITN) : Free Stock Analysis Report To read this article on Zacks.com click here.
Every investor in NIO Inc. ( NYSE:NIO ) should be aware of the most powerful shareholder groups. Generally speaking, as...
As we get ready to turn the page on 2021, I can't help but note how we've witnessed a pretty substantial market bifurcation in stocks over the past couple of quarters. Below are four stocks that I believe are likely to find their way into my portfolio in 2022. A year ago, I was completely against electric vehicle (EV) manufacturer Nio (NYSE: NIO).
It's been a dreadful year for Citigroup (NYSE: C) in terms of stock price performance, with shares of the megabank down about 1% this year. The KBW Nasdaq Bank Index, which tracks large bank stocks, is up nearly 35% this year, showing just how much Citigroup has lagged the broader sector. Trading at beaten-down levels, can Citigroup turn it around in 2022?
Investing in stocks can be a risky endeavor. Buying a stock does not guarantee an investor a return on that investment. For that matter, it does not even guarantee an investor a return of their initial investment.
The dividends for such stocks are pretty much their only attraction. On the other hand, you can find dividend stocks that are anything but boring and stodgy. Here are three dividend stocks that soared more than 50% in 2021 and are still great buys.
Sorrento Therapeutics Inc. announced Monday a contract for the sale and distribution of up to 10 million its Covistix rapid COVID-19 virus detection tests in Mexico. That follows a previously announced deal for up to 5 million Covistix tests in Mexico, bringing the total number of tests to 15 million. The biopharmaceutical company said independent clinical testing of Covistix by a Mexico-based national institute showed a "very high sensitivity" of around 90% in an "all-comers" population, includ
Web 3.0 is widely considered to be the next frontier of internet technology, making the metaverse a golden macrotrend for retail investors. The metaverse refers to an easily scalable real-time virtual reality or mixed reality world, comprising several interoperable, immersive, and interactive 3D environments. The metaverse is also expected to maintain all relevant information about payments, identity, and history across user sessions.
Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. Despite the big payout bumps, Abbott only needed around 33% of the free cash flow its operations generated over the past year to make dividend payments. Despite pandemic pressure, medical-device segment sales during the first nine months of 2021 rose 24.5% year over year to $10.6 billion.
Nvidia is up 130% this year and trades at lofty multiples. But there are a few chip stocks that still look cheap on a price-to-earnings basis.
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
These auto industry players are returning meaningful cash to investors today.
There's no denying that 2021 has been a rough year for many biotech stocks. The shares of quite a few big and small biotech companies alike are set to finish the year in negative territory. Here's why they chose Axsome Therapeutics (NASDAQ: AXSM), Novartis (NYSE: NVS), and Vertex Pharmaceuticals (NASDAQ: VRTX).
One of the best ways to put money to work in the stock market over the long run is to buy best-of-breed companies. The not-so-subtle secret to CrowdStrike's success is the company's cloud-native platform known as Falcon. CrowdStrike notes that Falcon oversees about 1 trillion events each day.
Wall Street's consensus price target for Teladoc Health (NYSE: TDOC) stock over the next 12 months reflects a 67% upside potential. It's quite possible that the spread of the omicron variant of COVID-19 could give Teladoc a boost in the near term. Teladoc enjoyed a big surge in virtual visits in 2020 thanks to the pandemic.
Naren Gupta, a venture capitalist who co-founded Nexus Venture Partners to help plant Indian SaaS startups on the world map, died on Saturday. Gupta, who moved to the U.S. to pursue higher education in late 1960s, co-founded Integrated Systems, a software firm that was ultimately sold to Intel. After leaving the firm, he began to explore investment opportunities.
Banks are healthy, but their catalysts for growth are murky. These half-dozen stocks rise above the pack, says one strategist.
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...
For retail investors, seeking solid clues to the probable movements of the equity markets, the great volume of published analysis from the Wall Street experts is a blessing, making available everything the investor needs to know to trade successfully. But it comes with a price. The sheer quantity of data involved is almost impossible for the non-expert to parse, but how to know which of the 7,700 stock pros is the best to listen to? A look at the Top Wall Street Analysts ratings from TipRanks ca
'Rich Dad Poor Dad' is as bearish as ever.
(Bloomberg) -- There’s no reason to fear that the rally that catapulted U.S. stocks to successive records this year will end anytime soon, according to JPMorgan Chase & Co. strategists. In fact, more investors may soon join. Most Read from BloombergCoronavirus Can Persist for Months After Traversing BodyU.S. Futures Rise as Traders Mull Virus, China Vow: Markets WrapCases Surge Globally; Fauci Warns of Complacency: Virus UpdateTrudeau Says China Playing Western States Against Each OtherSingapore