Should Value Investors Buy Modine Manufacturing (MOD) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Modine Manufacturing (MOD) is a stock many investors are watching right now. MOD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 15.46. This compares to its industry's average Forward P/E of 20.20. MOD's Forward P/E has been as high as 18.55 and as low as 7.35, with a median of 11.60, all within the past year.
Investors should also note that MOD holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MOD's industry currently sports an average PEG of 0.90. 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 0.46.
Finally, investors should note that MOD has a P/CF ratio of 10.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MOD's P/CF compares to its industry's average P/CF of 28.54. 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 8.64.
These are only a few of the key metrics included in Modine Manufacturing's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MOD looks like an impressive value stock at the moment.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report
