In the latest market close, Modine (MOD) reached $118.69, with a -0.12% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.
The the stock of heating and cooling products maker has fallen by 10.03% in the past month, lagging the Auto-Tires-Trucks sector's loss of 6.74% and the S&P 500's loss of 2.2%.
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 $0.79, marking a 6.76% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $614.7 million, up 9.49% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.83 per share and revenue of $2.62 billion, indicating changes of +17.85% and +8.91%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Modine is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Modine is currently exchanging hands at a Forward P/E ratio of 31.04. Its industry sports an average Forward P/E of 11.31, so one might conclude that Modine is trading at a premium comparatively.
Also, we should mention that MOD has a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.69 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 31% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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