Our Stock of the Week is Modine Manufacturing (MOD). Modine specializes in heating and cooling solutions for the auto industry, commercial buildings, heavy construction equipment, and medical devices. Its Climate Solutions group provides components and equipment for air conditioning, ventilating, and refrigeration products. Its Performance Technologies segment designs and manufactures cooling technology for vehicles and industrial applications. Modine’s PT business also provides thermal solutions for zero-emission and hybrid vehicles.
Modine recently sold three lower-margin automobile-related businesses in Germany and will shift the capital to higher-margin operations.
Modine’s earnings jumped 166% to 85 cents per share for its fiscal Q1 results in early August. Revenue jumped 15% to $622.4 million in Q1, accelerating from 8% in Q4 2023. For the 2024 fiscal year ending in March, Modine expects 6% to 11% net sales growth from the $2.29 billion reported for 2023 and an increase in EPS of 48%.
Technically, the stock has been in a trading range since its robust earnings in the March quarter and has been testing breakout levels around $49. It has been forming a cup pattern for the last month and is in good shape for a breakout move in better market conditions.
As always, we will not chase strength on Monday but will look to trade the stock into volatility aggressively.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in MOD. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
