The most recent trading session ended with Modine (MOD) standing at $81.64, reflecting a -0.2% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.15% gain on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Shares of the heating and cooling products maker witnessed a gain of 1.92% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 6.45% and outperforming the S&P 500's loss of 0.21%.
Market participants will be closely following the financial results of Modine in its upcoming release. On that day, Modine is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 24.68%. Simultaneously, our latest consensus estimate expects the revenue to be $629.47 million, showing a 4.3% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.71% lower. Modine is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Modine is currently trading at a Forward P/E ratio of 17.77. For comparison, its industry has an average Forward P/E of 10.32, which means Modine is trading at a premium to the group.
One should further note that MOD currently holds a PEG ratio of 0.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.73.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 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.
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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