In the latest trading session, Modine (MOD) closed at $98.50, marking a -2.8% move from the previous day. This move lagged the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
Coming into today, shares of the heating and cooling products maker had gained 11.61% in the past month. In that same time, the Auto-Tires-Trucks sector lost 6.69%, while the S&P 500 gained 4.27%.
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 $0.98, indicating a 5.77% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $654.07 million, indicating a 1.12% decrease compared to the same quarter of the previous year.
MOD's full-year Zacks Consensus Estimates are calling for earnings of $4.51 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +11.36% and +5.77%, respectively.
Investors should also note any recent changes to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.27% lower within the past month. Modine currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Modine is presently trading at a Forward P/E ratio of 22.45. This expresses a premium compared to the average Forward P/E of 12.81 of its industry.
It is also worth noting that MOD currently has a PEG ratio of 0.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 1.08.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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