The stock closed in red for the week, but on a lower volume. It was down -3.08% on a -7% lower volume than the 10-week average. You want to see a strong close on heavy volume before initiating a position. That signals institutional buying. But do not conclude anything just based on this week’s action. A prudent approach would be to watch the price volume momentum in the coming trading sessions.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 3.0% away from the 10-week moving average.
In the last twelve months, Titan Company has rallied nearly 64.9% as compared to 41.8% for the Nifty500. It has a Relative Strength Rating of 50. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Titan Company can maintain this outperformance, it could make sense as a CANSLIM trade.
On the earnings front, Titan Company has an excellent EPS Rank of 83, which indicates consistency in earnings. The sales for the stock have grown by 6% over the past three years; however the earnings growth remained muted at -13%. Its 3-years earnings stability is 25, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 9% and 13%, respectively. The 5-years earnings stability is 30. The return on equity for the last reported year is 14%.
The stock belongs to the industry group of Retail/Whlsle-Jewelry. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 73. The current price of Titan Company is -4% off from its 52-week high price and 69% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template