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Should Value Investors Buy Modine Manufacturing (MOD) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Modine Manufacturing (MOD - Free Report) is a stock many investors are watching right now. MOD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.11. This compares to its industry's average Forward P/E of 22.96. Over the past year, MOD's Forward P/E has been as high as 12.98 and as low as 4.54, with a median of 8.20.
We should also highlight that MOD has a P/B ratio of 2.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.66. MOD's P/B has been as high as 2.76 and as low as 0.87, with a median of 1.87, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOD has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.78.
Another great Automotive - Original Equipment stock you could consider is Wabash National (WNC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Wabash National sports a P/B ratio of 2.74 as well; this compares to its industry's price-to-book ratio of 2.66. In the past 52 weeks, WNC's P/B has been as high as 3.61, as low as 1.80, with a median of 2.58.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Modine Manufacturing and Wabash National are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOD and WNC feels like a great value stock at the moment.
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Should Value Investors Buy Modine Manufacturing (MOD) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Modine Manufacturing (MOD - Free Report) is a stock many investors are watching right now. MOD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.11. This compares to its industry's average Forward P/E of 22.96. Over the past year, MOD's Forward P/E has been as high as 12.98 and as low as 4.54, with a median of 8.20.
We should also highlight that MOD has a P/B ratio of 2.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.66. MOD's P/B has been as high as 2.76 and as low as 0.87, with a median of 1.87, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOD has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.78.
Another great Automotive - Original Equipment stock you could consider is Wabash National (WNC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Wabash National sports a P/B ratio of 2.74 as well; this compares to its industry's price-to-book ratio of 2.66. In the past 52 weeks, WNC's P/B has been as high as 3.61, as low as 1.80, with a median of 2.58.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Modine Manufacturing and Wabash National are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOD and WNC feels like a great value stock at the moment.