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Why Modine (MOD) Outpaced the Stock Market Today

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Modine (MOD - Free Report) closed the most recent trading day at $95.85, moving +2.27% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.

Heading into today, shares of the heating and cooling products maker had lost 10.34% over the past month, lagging the Auto-Tires-Trucks sector's loss of 3.9% and the S&P 500's gain of 1.67%.

Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.98, marking a 5.77% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $654.07 million, down 1.12% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.51 per share and a revenue of $2.73 billion, representing changes of +11.36% and +5.77%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.7% decrease. Modine is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Modine is presently trading at a Forward P/E ratio of 20.76. This valuation marks a premium compared to its industry average Forward P/E of 12.34.

Also, we should mention that MOD has a PEG ratio of 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MOD's industry had an average PEG ratio of 1.28 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 45% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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