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Modine Manufacturing (MOD) Hits a 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of Modine Manufacturing Company (MOD - Free Report) ? Shares have been on the move with the stock up 10.05% over the past month. MOD hit a new 52-week high of $24.90 in the previous session. Modine Manufacturing has gained about 26% since the start of the year compared to the 2.4% move for the Auto-Tires-Trucks sector and the 2.42% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 30, 2018, Modine Manufacturing reported EPS of $0.35 versus the Zacks Consensus Estimate of $0.29 while it beat the consensus revenue estimate by 9.96%.
For the current fiscal year, Modine Manufacturing is expected to post earnings of $1.5 per share on $2.06 billion in revenues. This represents a 92.31% change in EPS on a 37.06% change in revenues. For the next fiscal year, the company is expected to earn $1.75 per share on $2.19 billion in revenues. This represents changes of 16.45% and 6.1%, respectively.
While MOD has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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 Manufacturing has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.4x current fiscal year EPS estimate. On a trailing cash flow basis, the stock currently trades at 12.83x versus its peer group's average of 8.71x. 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 Manufacturing currently has a Zacks Rank #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 Manufacturing passes the test. Thus, it seems as though MOD shares could still be poised for more gains ahead.
How Does Modine Manufacturing Stack Up to the Competition?
Shares of Modine Manufacturing have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including OSK, LCII, and LEA, all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 50% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MOD, even beyond its own solid fundamental situation.
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Modine Manufacturing (MOD) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Modine Manufacturing Company (MOD - Free Report) ? Shares have been on the move with the stock up 10.05% over the past month. MOD hit a new 52-week high of $24.90 in the previous session. Modine Manufacturing has gained about 26% since the start of the year compared to the 2.4% move for the Auto-Tires-Trucks sector and the 2.42% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 30, 2018, Modine Manufacturing reported EPS of $0.35 versus the Zacks Consensus Estimate of $0.29 while it beat the consensus revenue estimate by 9.96%.
For the current fiscal year, Modine Manufacturing is expected to post earnings of $1.5 per share on $2.06 billion in revenues. This represents a 92.31% change in EPS on a 37.06% change in revenues. For the next fiscal year, the company is expected to earn $1.75 per share on $2.19 billion in revenues. This represents changes of 16.45% and 6.1%, respectively.
Modine Manufacturing Company Price and Consensus
Modine Manufacturing Company Price and Consensus | Modine Manufacturing Company Quote
Valuation Metrics
While MOD has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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 Manufacturing has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.4x current fiscal year EPS estimate. On a trailing cash flow basis, the stock currently trades at 12.83x versus its peer group's average of 8.71x. 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 Manufacturing currently has a Zacks Rank #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 Manufacturing passes the test. Thus, it seems as though MOD shares could still be poised for more gains ahead.
How Does Modine Manufacturing Stack Up to the Competition?
Shares of Modine Manufacturing have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including OSK, LCII, and LEA, all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 50% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MOD, even beyond its own solid fundamental situation.