Modine (MOD) closed at $149.78 in the latest trading session, marking a +2.09% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.69%, while the tech-heavy Nasdaq appreciated by 1.05%.
Shares of the heating and cooling products maker have depreciated by 25.13% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 0.53%, and the S&P 500's gain of 0.97%.
Investors will be eagerly watching for the performance of Modine in its upcoming earnings disclosure. The company is expected to report EPS of $1.47, up 38.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $964.62 million, up 30.55% from the year-ago period.
MOD's full-year Zacks Consensus Estimates are calling for earnings of $7.02 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +39.84% and +10.22%, respectively.
Investors should also note any recent changes to analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.22% decrease. Right now, Modine possesses a Zacks Rank of #5 (Strong Sell).
Investors should also note Modine's current valuation metrics, including its Forward P/E ratio of 20.9. This represents a premium compared to its industry average Forward P/E of 12.17.
Also, we should mention that MOD has a PEG ratio of 0.52. 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 industry currently had an average PEG ratio of 0.71 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 14% echelons of all 250+ industries.
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.
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
This article originally published on Zacks Investment Research (zacks.com).