Modine (MOD) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Modine (MOD) ending at $80.57, denoting a -0.69% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
Coming into today, shares of the heating and cooling products maker had gained 2.37% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.23%, while the S&P 500 lost 4.29%.
Investors will be eagerly watching for the performance of Modine in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 24.68% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $629.47 million, up 4.3% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Modine. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.71% lower. At present, Modine boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Modine is currently exchanging hands at a Forward P/E ratio of 17.63. This signifies a premium in comparison to the average Forward P/E of 10.43 for its industry.
Also, we should mention that MOD has a PEG ratio of 0.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment industry had an average PEG ratio of 0.81 as trading concluded yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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