In the latest market close, Modine (MOD – Free Report) reached $116.17, with a +0.21% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Prior to today’s trading, shares of the heating and cooling products maker had lost 17.55% over the past month. This has lagged the Auto-Tires-Trucks sector’s gain of 10.68% and the S&P 500’s loss of 2.36% in that time.
The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. The company’s upcoming EPS is projected at $0.79, signifying a 6.76% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $614.7 million, showing a 9.49% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.83 per share and a revenue of $2.62 billion, demonstrating changes of +17.85% and +8.91%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. Modine presently features a Zacks Rank of #3 (Hold).
Investors should also note Modine’s current valuation metrics, including its Forward P/E ratio of 30.28. This denotes a premium relative to the industry’s average Forward P/E of 11.35.
We can also see that MOD currently has a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Automotive – Original Equipment industry currently had an average PEG ratio of 0.69 as of yesterday’s close.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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