Modine (MOD) closed at $118.02 in the latest trading session, marking a +0.31% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.
The heating and cooling products maker's stock has dropped by 11.96% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 16.11% and the S&P 500's loss of 0.29%.
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 $0.79, indicating a 6.76% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $614.7 million, indicating a 9.49% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $2.62 billion, which would represent changes of +17.85% and +8.91%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Modine. Recent revisions tend to reflect the latest near-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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Modine is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 30.74 right now. Its industry sports an average Forward P/E of 12.8, so one might conclude that Modine is trading at a premium comparatively.
It is also worth noting that MOD currently has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 0.9 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 38% of all industries, numbering over 250.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
