Modine Manufacturing, Tuesday's pick for IBD 50 Growth Stocks To Watch, is breaking out today in the strengthening stock market uptrend. This makes MOD stock one of the best stocks to buy and watch in the stock market today.
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.
Performance technologies segment designs and manufactures cooling technology for vehicles and industrial applications. That business also provides thermal solutions for zero-emission and hybrid vehicles.
Surge In Sales And Earnings
In the latest quarter, the company's earnings surged 166% vs. the year-ago period, to 85 cents a share. Sales grew 15% to $622.4 million.
Amid that strength, Modine stock shows a modest 88 Earnings Per Share Rating, according to IBD Stock Checkup. This rating takes into account earnings growth and their stability over the past three years. The two most recent quarters are weighted more heavily.
MOD stock, however, boasts a perfect 99 IBD Composite Rating after an 84% price advance, which puts it among the top stocks to buy and watch. That followed a late-May breakout past a 26.90 cup-base entry.
Learn How To Time The Market With IBD's ETF Market Strategy
MOD Stock Hits Buy Point
On Tuesday, Modine stock was breaking out past a flat base's 49.60 buy point, per IBD MarketSmith pattern recognition. Shares raced nearly 4% higher midday Tuesday, hitting the buy trigger. The 5% buy area goes up to 52.08.
Bullishly, the relative strength line hit a new high Tuesday, confirming the strength of the stock's breakout move. A strong RS line is a sign of big outperformance vs. the S&P 500.
Decent fundamentals, along with substantial gains in recent months, also contribute to Modine's high standing and worthy of consideration among stocks to buy.
Further, with the stock market outlook back in a confirmed uptrend — and a 20%-40% recommended exposure range — investors should be looking for stocks to buy that are setting up and breaking out past correct entry points.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Cadence Design Systems | 247.50 | Cup with handle | |
| McKesson | 441.00 | Flat base | |
| Halliburton | 41.08 | Cup with handle |
Source: IBD Data As Of Oct. 10, 2023
Follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
