In the latest close session, Modine (MOD) was down 1.21% at $133.51. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.76%.
The heating and cooling products maker's stock has dropped by 15.77% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 4.56% and the S&P 500's gain of 0.79%.
Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.02, marking a 10.87% rise 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 annual period, the Zacks Consensus Estimates anticipate earnings of $4.63 per share and a revenue of $3.04 billion, signifying shifts of +14.32% and +17.58%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Modine is currently a Zacks Rank #3 (Hold).
Looking at valuation, Modine is presently trading at a Forward P/E ratio of 29.18. This denotes a premium relative to the industry average Forward P/E of 16.89.
It's also important to note that MOD currently trades at a PEG ratio of 0.86. 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 average PEG ratio for the Automotive - Original Equipment industry stood at 1.24 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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