In the latest trading session, Modine (MOD) closed at $165.19, marking a +1.56% move from the previous day. This move outpaced the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%.
Coming into today, shares of the heating and cooling products maker had gained 10.35% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.04%, while the S&P 500 gained 0.89%.
The investment community will be closely monitoring the performance of Modine in its forthcoming earnings report. The company's upcoming EPS is projected at $1.02, signifying a 10.87% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $763.38 million, up 23.77% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.62 per share and a revenue of $3.04 billion, demonstrating changes of +14.07% and +17.58%, respectively, from the preceding 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Modine holds a Zacks Rank of #3 (Hold).
Investors should also note Modine's current valuation metrics, including its Forward P/E ratio of 35.23. For comparison, its industry has an average Forward P/E of 16.59, which means Modine is trading at a premium to the group.
It is also worth noting that MOD currently has a PEG ratio of 1.04. 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 industry had an average PEG ratio of 1.22 as trading concluded yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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