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Modine (MOD) Stock Declines While Market Improves: Some Information for Investors

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In the latest market close, Modine (MOD - Free Report) reached $107.80, with a -0.64% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.63%.

Shares of the heating and cooling products maker witnessed a gain of 13.61% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 15.81% and outperforming the S&P 500's gain of 4.28%.

Investors will be eagerly watching for the performance of Modine in its upcoming earnings disclosure. In that report, analysts expect Modine to post earnings of $0.84 per share. This would mark a year-over-year decline of 1.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $627.67 million, indicating a 0.85% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.70 per share and revenue of $2.57 billion. These totals would mark changes of +13.85% and +6.89%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Modine presently features a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Modine is presently trading at a Forward P/E ratio of 29.3. Its industry sports an average Forward P/E of 12.75, so one might conclude that Modine is trading at a premium comparatively.

Investors should also note that MOD has a PEG ratio of 0.86 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.71.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 23% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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