Modine (MOD) ended the recent trading session at $276.51, demonstrating a -8.2% change from the preceding day's closing price. This change lagged the S&P 500's 2.65% loss on the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
The stock of heating and cooling products maker has risen by 11.7% in the past month, leading the Auto-Tires-Trucks sector's gain of 5.75% and the S&P 500's gain of 5.47%.
Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. On that day, Modine is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 34.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $895.49 million, indicating a 31.15% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.73 per share and a revenue of $4.03 billion, signifying shifts of +53.98% and +26.76%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has moved 6.99% higher. Modine is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Modine's current valuation metrics, including its Forward P/E ratio of 38.97. This valuation marks a premium compared to its industry average Forward P/E of 13.85.
We can also see that MOD currently has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.92 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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).