Modine (MOD) closed the most recent trading day at $92.65, moving -6.11% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the heating and cooling products maker had gained 4.81% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 1.41% and the S&P 500's gain of 4.37%.
Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 7.69% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $651.12 million, showing a 1.57% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.52 per share and a revenue of $2.74 billion, representing changes of +11.6% and +6.14%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Modine possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Modine is presently being traded at a Forward P/E ratio of 21.83. This valuation marks a premium compared to its industry average Forward P/E of 13.11.
It's also important to note that MOD currently trades at a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 1.1.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Modine Manufacturing Company (MOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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