Modine (MOD) closed at $192.35 in the latest trading session, marking a -1.19% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
The heating and cooling products maker's shares have seen an increase of 1.91% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 3.92% and outstripping the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Modine in its upcoming release. The company is predicted to post an EPS of $1.46, indicating a 37.74% 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.65 per share and revenue of $4.04 billion, indicating changes of +52.39% and +27.06%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Modine should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Modine is currently a Zacks Rank #3 (Hold).
In terms of valuation, Modine is currently trading at a Forward P/E ratio of 25.45. This indicates a premium in contrast to its industry's Forward P/E of 13.66.
We can also see that MOD currently has a PEG ratio of 0.64. 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 was holding an average PEG ratio of 0.83 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Modine Manufacturing Company (MOD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).