Modine (MOD) Outpaces Stock Market Gains: What You Should Know
The most recent trading session ended with Modine (MOD) standing at $98, reflecting a +1.73% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
Heading into today, shares of the heating and cooling products maker had lost 0.19% over the past month, lagging the Auto-Tires-Trucks sector's gain of 2.42% and the S&P 500's gain of 3.38% in that time.
Market participants will be closely following the financial results of Modine in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 1.18% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $627.67 million, up 0.85% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $2.57 billion, which would represent changes of +13.85% and +6.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Modine. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.89% increase. At present, Modine boasts a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Modine is at present trading with a Forward P/E ratio of 26.02. For comparison, its industry has an average Forward P/E of 12.48, which means Modine is trading at a premium to the group.
Investors should also note that MOD has a PEG ratio of 0.77 right now. 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. MOD's industry had an average PEG ratio of 0.66 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report
