Modine (MOD) Rises As Market Takes a Dip: Key Facts
Modine (MOD) closed the most recent trading day at $196.95, moving +1.99% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.03% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.01%.
The heating and cooling products maker's shares have seen an increase of 3.1% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 0.35% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. The company is expected to report EPS of $1.46, up 37.74% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $964.62 million, indicating a 30.55% upward movement from the same quarter last year.
MOD's full-year Zacks Consensus Estimates are calling for earnings of $7.65 per share and revenue of $4.04 billion. These results would represent year-over-year changes of +52.39% and +27.06%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Modine. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Modine holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 25.25 right now. This expresses a premium compared to the average Forward P/E of 12.24 of its industry.
Also, we should mention that MOD has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.74.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
