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Why the Market Dipped But Modine (MOD) Gained Today

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Modine (MOD - Free Report) closed the most recent trading day at $99.73, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.51% loss on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.93%.

Shares of the heating and cooling products maker have appreciated by 2.46% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 7.26% and outperforming the S&P 500's loss of 0.26%.

The investment community will be closely monitoring the performance of Modine in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2024. 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%. Simultaneously, our latest consensus estimate expects the revenue to be $627.67 million, showing a 0.85% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $2.57 billion, which would represent changes of +14.15% and +6.88%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Currently, Modine is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Modine is at present trading with a Forward P/E ratio of 26.64. This represents a premium compared to its industry's average Forward P/E of 12.45.

It is also worth noting that MOD currently has a PEG ratio of 0.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MOD's industry had an average PEG ratio of 0.73 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 220, finds itself in the bottom 13% echelons of all 250+ industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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