Modine (MOD) closed at $154.95 in the latest trading session, marking a -2.28% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.49% for the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The stock of heating and cooling products maker has risen by 17.56% in the past month, leading the Auto-Tires-Trucks sector's gain of 15.15% and the S&P 500's gain of 2.99%.
The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. The company is predicted to post an EPS of $1.01, indicating a 4.12% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $690.47 million, reflecting a 4.93% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.63 per share and a revenue of $2.88 billion, indicating changes of +14.32% and +11.31%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Modine is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Modine is presently trading at a Forward P/E ratio of 34.25. This denotes a premium relative to the industry average Forward P/E of 15.09.
One should further note that MOD currently holds a PEG ratio of 1.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MOD in the coming trading sessions, be sure to utilize Zacks.com.
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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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