In the latest trading session, Modine (MOD) closed at $147.05, marking a -2.94% move from the previous day. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow saw an upswing of 1.36%, while the tech-heavy Nasdaq appreciated by 0.72%.
Shares of the heating and cooling products maker have appreciated by 6.9% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 5.23%, and the S&P 500's gain of 2.38%.
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 $1.01, up 4.12% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $690.47 million, showing a 4.93% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $2.88 billion, which would represent changes of +14.32% and +11.31%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Modine. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Modine is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Modine is presently trading at a Forward P/E ratio of 32.72. This expresses a premium compared to the average Forward P/E of 14.46 of its industry.
Also, we should mention that MOD has a PEG ratio of 0.96. 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. The Automotive - Original Equipment industry had an average PEG ratio of 1.3 as trading concluded yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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