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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Modine Manufacturing (MOD). MOD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.40. This compares to its industry's average Forward P/E of 19.14. MOD's Forward P/E has been as high as 18.55 and as low as 7.35, with a median of 10.49, all within the past year.
Investors will also notice that MOD has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOD's PEG compares to its industry's average PEG of 0.93. Within the past year, MOD's PEG has been as high as 0.74 and as low as 0.29, with a median of 0.42.
Finally, investors should note that MOD has a P/CF ratio of 9.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 26.82. Within the past 12 months, MOD's P/CF has been as high as 11.08 and as low as 4.99, with a median of 8.40.
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
