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Modine (MOD) Declines More Than Market: Some Information for Investors

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In the latest close session, Modine (MOD - Free Report) was down 7.92% at $119.68. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq added 0.16%.

The heating and cooling products maker's stock has dropped by 15.03% in the past month, falling short of the Auto-Tires-Trucks sector's loss of 1.39% and the S&P 500's gain of 1.19%.

Investors will be eagerly watching for the performance of Modine in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.02, signifying a 10.87% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $763.38 million, indicating a 23.77% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $3.04 billion, which would represent changes of +14.32% and +17.58%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. Modine is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Modine is currently being traded at a Forward P/E ratio of 28.06. This valuation marks a premium compared to its industry average Forward P/E of 13.89.

One should further note that MOD currently holds a PEG ratio of 0.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MOD's industry had an average PEG ratio of 1.01 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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