In the latest close session, Modine (MOD) was up +2.52% at $283.67. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.
The heating and cooling products maker's stock has dropped by 1.15% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 8.9% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. It is anticipated that the company will report an EPS of $1.43, marking a 34.91% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $895.49 million, indicating a 31.15% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.73 per share and revenue of $4.03 billion. These totals would mark changes of +53.98% and +26.76%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.99% higher. At present, Modine boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Modine is currently being traded at a Forward P/E ratio of 35.8. This expresses a premium compared to the average Forward P/E of 13.16 of its industry.
Meanwhile, MOD's PEG ratio is currently 0.89. 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 Automotive - Original Equipment was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 34% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Modine Manufacturing Company (MOD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).