Are Investors Undervaluing Modine Manufacturing (MOD) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Modine Manufacturing (MOD). MOD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 17.31 right now. For comparison, its industry sports an average P/E of 21.30. Over the past 52 weeks, MOD's Forward P/E has been as high as 18.55 and as low as 7.35, with a median of 12.72.
Investors will also notice that MOD has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MOD's industry has an average PEG of 1.01 right now. Over the past 52 weeks, MOD's PEG has been as high as 0.74 and as low as 0.29, with a median of 0.51.
Finally, investors will want to recognize that MOD has a P/CF ratio of 11.58. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 29.08. Over the past year, MOD's P/CF has been as high as 11.58 and as low as 4.99, with a median of 9.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Modine Manufacturing is likely undervalued currently. And when considering the strength of its earnings outlook, MOD sticks out at as one of the market's strongest value stocks.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report
