In the latest trading session, Modine (MOD) closed at $230.41, marking a -2.03% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Heading into today, shares of the heating and cooling products maker had lost 14.55% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.02% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. 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.
It is also important to note the recent changes to analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 30.43 right now. This denotes a premium relative to the industry average Forward P/E of 12.73.
It is also worth noting that MOD currently has a PEG ratio of 0.76. 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 0.8 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).