Modine (MOD) shares rallied 4.3% in the last trading session to close at $125.14. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 27.4% loss over the past four weeks.
Modine shares surged amid the company’s significant progress toward the capacity expansion efforts. Chiller production has begun at the facility in Grenada, MS, where two of the planned five lines are currently operational. The plant in Franklin, WI, is set to begin initial data center product production in the fiscal third quarter, while the site in Jefferson City, MO, will launch two of its four chiller lines in the fiscal fourth quarter.
This heating and cooling products maker is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $763.38 million, up 23.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Modine, the consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MOD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Modine is a member of the Zacks Automotive - Original Equipment industry. One other stock in the same industry, LCI (LCII), finished the last trading session 1.8% higher at $131.01. LCII has returned 5.4% over the past month.
For LCI, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.69. This represents a change of +86.5% from what the company reported a year ago. LCI currently has a Zacks Rank of #3 (Hold).
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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.
