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Here's Why Modine (MOD) Fell More Than Broader Market

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In the latest close session, Modine (MOD - Free Report) was down 2.66% at $149.82. The stock's change was less than the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.

The heating and cooling products maker's shares have seen an increase of 11.01% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 18.68% and outstripping the S&P 500's gain of 4.06%.

The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. The company is expected to report EPS of $1.01, up 4.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $690.47 million, up 4.93% from the prior-year quarter.

MOD's full-year Zacks Consensus Estimates are calling for earnings of $4.63 per share and revenue of $2.88 billion. These results would represent year-over-year changes of +14.32% and +11.31%, respectively.

Any recent changes to analyst estimates for Modine should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Modine holds a Zacks Rank of #3 (Hold).

Investors should also note Modine's current valuation metrics, including its Forward P/E ratio of 33.24. This indicates a premium in contrast to its industry's Forward P/E of 13.98.

One should further note that MOD currently holds a PEG ratio of 0.98. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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