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Modine (MOD) Soars 7.3%: Is Further Upside Left in the Stock?
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Modine (MOD - Free Report) shares rallied 7.3% in the last trading session to close at $35.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.5% gain over the past four weeks.
Modine's acquisition of Napps Technology is likely to have sparked investors' enthusiasm. The buyout aligns with Modine's growth strategy of providing innovative technologies and systems that address real-world concerns, such as the improvement of indoor air quality in educational institutions, particularly schools.
Currently, Modine focuses on serving the North American chiller market, which is valued at around $2 billion, with its large chillers primarily targeting the data center segment. The acquisition of Napps Technology enables Modine to expand its offerings to the K-12 school market, providing them with small tonnage chillers and chillers equipped with heat pumps. This acquisition also broadens Modine's customer base and allows the company to cater to a wider range of end markets.
Modine anticipates generating between $6 million to $8 million in revenue from the acquisition this year, with the expectation of doubling that figure within the next two years. The strategic acquisition not only bolsters Modine's market presence but also positions the company for sustained growth in the evolving HVAC industry.
This heating and cooling products maker is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +34.4%. Revenues are expected to be $563.1 million, up 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Modine, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MOD going forward to see if this recent jump can turn into more strength down the road.
Modine is part of the Zacks Automotive - Original Equipment industry. Lear (LEA - Free Report) , another stock in the same industry, closed the last trading session 2% higher at $153.08. LEA has returned 5.1% in the past month.
Lear's consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $3.05. Compared to the company's year-ago EPS, this represents a change of +70.4%. Lear currently boasts a Zacks Rank of #2 (Buy).
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Modine (MOD) Soars 7.3%: Is Further Upside Left in the Stock?
Modine (MOD - Free Report) shares rallied 7.3% in the last trading session to close at $35.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.5% gain over the past four weeks.
Modine's acquisition of Napps Technology is likely to have sparked investors' enthusiasm. The buyout aligns with Modine's growth strategy of providing innovative technologies and systems that address real-world concerns, such as the improvement of indoor air quality in educational institutions, particularly schools.
Currently, Modine focuses on serving the North American chiller market, which is valued at around $2 billion, with its large chillers primarily targeting the data center segment. The acquisition of Napps Technology enables Modine to expand its offerings to the K-12 school market, providing them with small tonnage chillers and chillers equipped with heat pumps. This acquisition also broadens Modine's customer base and allows the company to cater to a wider range of end markets.
Modine anticipates generating between $6 million to $8 million in revenue from the acquisition this year, with the expectation of doubling that figure within the next two years. The strategic acquisition not only bolsters Modine's market presence but also positions the company for sustained growth in the evolving HVAC industry.
This heating and cooling products maker is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +34.4%. Revenues are expected to be $563.1 million, up 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Modine, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MOD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Modine is part of the Zacks Automotive - Original Equipment industry. Lear (LEA - Free Report) , another stock in the same industry, closed the last trading session 2% higher at $153.08. LEA has returned 5.1% in the past month.
Lear's consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $3.05. Compared to the company's year-ago EPS, this represents a change of +70.4%. Lear currently boasts a Zacks Rank of #2 (Buy).