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Is Modine Manufacturing (MOD) a Great Value Stock Right Now?

·2 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is Modine Manufacturing (MOD). MOD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.54 right now. For comparison, its industry sports an average P/E of 24.48. Over the last 12 months, MOD's Forward P/E has been as high as 8.95 and as low as 4.54, with a median of 6.48.

Investors should also recognize that MOD has a P/B ratio of 1.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.89. Over the past year, MOD's P/B has been as high as 2.05 and as low as 0.87, with a median of 1.31.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOD has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Modine Manufacturing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOD feels like a great value stock at the moment.


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