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Modine (MOD) Gains But Lags Market: What You Should Know

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The most recent trading session ended with Modine (MOD - Free Report) standing at $118.89, reflecting a +0.74% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 1.03%.

The heating and cooling products maker's stock has dropped by 15.99% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 15.06% and the S&P 500's loss of 0.71%.

The upcoming earnings release of Modine will be of great interest to investors. In that report, analysts expect Modine to post earnings of $0.79 per share. This would mark year-over-year growth of 6.76%. At the same time, our most recent consensus estimate is projecting a revenue of $614.7 million, reflecting a 9.49% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $2.62 billion, which would represent changes of +17.85% and +8.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Modine is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Modine is holding a Forward P/E ratio of 30.83. This indicates a premium in contrast to its industry's Forward P/E of 12.73.

We can additionally observe that MOD currently boasts a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry had an average PEG ratio of 0.91 as trading concluded yesterday.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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