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Modine Manufacturing Company (MOD) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Modine (MOD - Free Report) ? Shares have been on the move with the stock up 13% over the past month. The stock hit a new 52-week high of $24.66 in the previous session. Modine has gained 23.9% since the start of the year compared to the 28.6% move for the Zacks Auto-Tires-Trucks sector and the 13% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 1, 2023, Modine reported EPS of $0.48 versus consensus estimate of $0.43.
For the current fiscal year, Modine is expected to post earnings of $1.76 per share on $2.28 billion in revenues. This represents a 43.09% change in EPS on a 11.43% change in revenues. For the next fiscal year, the company is expected to earn $2.58 per share on $2.39 billion in revenues. This represents a year-over-year change of 46.59% and 4.53%, respectively.
Valuation Metrics
Modine may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Modine has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.8X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 0.56. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Modine currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Modine meets the list of requirements. Thus, it seems as though Modine shares could have potential in the weeks and months to come.
How Does MOD Stack Up to the Competition?
Shares of MOD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Wabash National Corporation (WNC - Free Report) . WNC has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Wabash National Corporation beat our consensus estimate by 18.31%, and for the current fiscal year, WNC is expected to post earnings of $2.79 per share on revenue of $2.83 billion.
Shares of Wabash National Corporation have gained 12.6% over the past month, and currently trade at a forward P/E of 10.12X and a P/CF of 8.42X.
The Automotive - Original Equipment industry may rank in the bottom 71% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for MOD and WNC, even beyond their own solid fundamental situation.
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Modine Manufacturing Company (MOD) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Modine (MOD - Free Report) ? Shares have been on the move with the stock up 13% over the past month. The stock hit a new 52-week high of $24.66 in the previous session. Modine has gained 23.9% since the start of the year compared to the 28.6% move for the Zacks Auto-Tires-Trucks sector and the 13% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 1, 2023, Modine reported EPS of $0.48 versus consensus estimate of $0.43.
For the current fiscal year, Modine is expected to post earnings of $1.76 per share on $2.28 billion in revenues. This represents a 43.09% change in EPS on a 11.43% change in revenues. For the next fiscal year, the company is expected to earn $2.58 per share on $2.39 billion in revenues. This represents a year-over-year change of 46.59% and 4.53%, respectively.
Valuation Metrics
Modine may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Modine has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.8X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 0.56. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Modine currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Modine meets the list of requirements. Thus, it seems as though Modine shares could have potential in the weeks and months to come.
How Does MOD Stack Up to the Competition?
Shares of MOD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Wabash National Corporation (WNC - Free Report) . WNC has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Wabash National Corporation beat our consensus estimate by 18.31%, and for the current fiscal year, WNC is expected to post earnings of $2.79 per share on revenue of $2.83 billion.
Shares of Wabash National Corporation have gained 12.6% over the past month, and currently trade at a forward P/E of 10.12X and a P/CF of 8.42X.
The Automotive - Original Equipment industry may rank in the bottom 71% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for MOD and WNC, even beyond their own solid fundamental situation.