Why the Market Dipped But Modine (MOD) Gained Today
The latest trading session saw Modine (MOD) ending at $128.32, denoting a +0.64% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the heating and cooling products maker had gained 12.52% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 5.41% and the S&P 500's gain of 2.06% in that time.
Market participants will be closely following the financial results of Modine in its upcoming release. The company's earnings per share (EPS) are projected to be $0.93, reflecting a 4.49% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $644.74 million, indicating a 3.91% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.85 per share and a revenue of $2.61 billion, representing changes of +18.46% and +8.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Modine. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Modine boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Modine is presently trading at a Forward P/E ratio of 33.13. This denotes a premium relative to the industry's average Forward P/E of 12.28.
We can additionally observe that MOD currently boasts a PEG ratio of 0.97. 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 0.75.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report