Modine Manufacturing is the IBD Stock Of The Day Thursday. The thermal management systems maker is part of a hot industry group and working on a fresh base, with a possible new entry.
Modine specializes in heating and cooling solutions for the auto industry, commercial buildings, heavy construction equipment and medical devices, among other industries.
Modine operates through its Climate Solutions and Performance Technologies business segments. Climate Solutions 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.
Meanwhile, the company is on a hot streak. Modine earnings leapt 166% to 85 cents per share for its fiscal Q1 results in early August. Revenue jumped 15% to $622.4 million in Q1, picking up from 8% in Q4 2023. For the 2024 fiscal year, Modine expects 6% to 11% net sales growth from the $2.29 billion reported for 2023.
Modine is a member of the IBD 50 list and leads the Building-A/C & Heating Products Group, according to IBD Stock Checkup. The industry group rallied nearly 49% year to date and ranks a lofty seventh out of the 197 groups tracked by Investor's Business Daily.
Trane Technologies which is in a similar field, although different industry group, jumped above its 50-day line Thursday. Trane Technologies ranks seventh in the Machinery-General Industrial group, led by Badger Meter.
MOD Stock
MOD stock inched higher Thursday and is finding support at 50-day moving average. Shares reclaimed their 10-day and 21-day lines on Wednesday after sliding below the technical averages earlier in the month.
Modine may be working on a flat base, but needs at least another week to develop. A move above Monday's high of 46.18 could offer an early entry, near the 50-day line and clearing a short trendline.
The relative strength line is right at long-term highs. The RS line, the blue line in the chart provided, tracks a stock's performance vs. the S&P 500.
MOD stock surged 154% from its May 24 low to its record high 49.60 on Sept. 1.
Modine has a perfect 99 Composite Rating, which combines various technical indicators into one easy-to-read score. Shares have an 88 EPS Rating. Modine's relative strength line is at 52-week highs and the stock has a 99 RS Rating.
TT stock popped 2.6% Thursday to jump above its 50-day line. Trane shares are trying to reclaim a still-valid 209.17 flat-base buy point. The flat base formed modestly above a double-bottom base.
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