In the latest trading session, Modine (MOD) closed at $253.15, marking a +2.29% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.05%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.64%.
Shares of the heating and cooling products maker witnessed a gain of 8.27% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its gain of 6.6%, and underperforming the S&P 500's gain of 8.59%.
The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. It is anticipated that the company will report an EPS of $1.51, marking a 34.82% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $907.34 million, showing a 40.19% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.82 per share and a revenue of $3.13 billion, demonstrating changes of +19.01% and +21.31%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Modine. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Modine is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 34.26 right now. This expresses a premium compared to the average Forward P/E of 12.38 of its industry.
Also, we should mention that MOD has a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.94 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
