Modine (MOD) ended the recent trading session at $154.01, demonstrating a -2.37% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.33% for the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the heating and cooling products maker had lost 12.93% over the past month, lagging the Auto-Tires-Trucks sector's loss of 1.42% and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Modine in its upcoming release. The company is predicted to post an EPS of $1.47, indicating a 38.68% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $964.62 million, up 30.55% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.46 per share and a revenue of $4.04 billion, indicating changes of +48.61% and +27.01%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Modine. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% higher within the past month. Modine is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Modine is currently being traded at a Forward P/E ratio of 21.15. This valuation marks a premium compared to its industry average Forward P/E of 11.54.
Meanwhile, MOD's PEG ratio is currently 0.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.71.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 22% of over 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.
To follow MOD in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).