Ituran Location and Control Ltd. Faces Sell Rating Amid EPS Concerns.

Ituran Location and Control Ltd. (ITRN) receives a "Sell" rating due to disappointing EPS revisions and growth forecasts. Analysts project a potential 36.19% upside from its current market price, while GuruFocus' GF Value indicates a potential downside of 8.2% from its present pricing.

Ituran Location and Control Ltd. (ITRN), a leading provider of location-based services and wireless communication products, has recently received a "Sell" rating from analysts due to disappointing EPS revisions and growth forecasts. The company's stock has been underperforming relative to the broader Information Technology sector, with a projected 36.19% upside from its current market price, according to analysts. In contrast, GuruFocus' GF Value indicates a potential downside of 8.2% from its present pricing [2].

Ituran's operations are primarily segmented into location-based services and wireless communications products. The location-based services segment includes stolen vehicle recovery (SVR), fleet management, personal locator services, and concierge services. The wireless communications products segment focuses on short and medium range two-way machine-to-machine wireless communications used for applications like automatic vehicle location (AVL) and automatic vehicle identification [1].

Despite these services, the company's EPS FWD Long Term Growth (3-5Y CAGR) stands at 6.2%, significantly below the Information Technology sector median of 15.04% [2]. This discrepancy has led to a "Sell" rating from Seeking Alpha's Quant Rating system, which has historically been associated with poor future stock performance. Over the last 10 years, stocks rated "Sell" or worse have underperformed the S&P 500 by an average of 20% annually [2].

Investors and financial professionals should consider these factors when evaluating Ituran Location and Control Ltd. The company's recent performance and growth forecasts suggest potential challenges ahead, but investors should also weigh the opportunities presented by its expanding partnerships and services in markets like Brazil [1].

References:
[1] https://www.marketscreener.com/news/ituran-location-and-control-expands-with-yamaha-and-bmw-motorrad-partnerships-in-brazil-ce7c50d9db8bf32c
[2] https://seekingalpha.com/warnings/4489896-warning-itrn-is-at-high-risk-of-performing-badly