Track market-moving stories before they get noisy

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Modine (MOD - Free Report) .

Modine currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.

Of the 12 recommendations that derive the current ABR, 11 are Strong Buy, representing 91.7% of all recommendations.

Brokerage Recommendation Trends for MOD

Check price target & stock forecast for Modine here>>>

While the ABR calls for buying Modine, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MOD Worth Investing In?Looking at the earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has declined 8.2% over the past month to $7.02.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Modine with a grain of salt.

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today that it will host a conference call and webcast to discuss its second quarter fiscal year 2027 financial results for the period ended September 30, 2026, on Wednesday, November 4, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Results are scheduled to be released after the market closes on Tuesday, November 3, 2026.

During the call, Modine President and Chief Executive Officer, Neil D. Brinker, and Executive Vice President and Chief Financial Officer, Michael B. (Mick) Lucareli, will review the company's second quarter financial results.

To access the live webcast, including presentation slides, please log on through the investor section of Modine's website at http://www.modine.com at least 10 minutes prior to the start of the event. A replay of the slides and the audio will be available on or after November 4, 2026, on the investor section of Modine's website at http://www.modine.com. An audio only replay will be available through midnight on November 11, 2026, by dialing 877-660-6853 (international replay 201-612-7415) and entering the Conference ID# 13762536. A transcript of the call will be posted to the company's website on or after November 9, 2026.

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 9,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, Europe, and Asia. For more information about Modine, visit www.modine.com.

Contact: Kathleen Powers (262) 636-1687 [email protected]

SOURCE Modine

Wall Street expects a year-over-year increase in earnings on higher revenues when Modine (MOD - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis heating and cooling products maker is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +38.7%.

Revenues are expected to be $964.62 million, up 30.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 13.77% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Modine?For Modine, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #5.

So, this combination makes it difficult to conclusively predict that Modine will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Modine would post earnings of $1.27 per share when it actually produced earnings of $1.53, delivering a surprise of +20.47%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Modine doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Automotive - Original Equipment industry, Gentherm (THRM - Free Report) , is soon expected to post earnings of $0.66 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -9.6%. Revenues for the quarter are expected to be $404.4 million, up 4.5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Gentherm has been revised 2.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.45%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Gentherm will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

On October 16, 2026, Modine Manufacturing Co MOD shares fell 3.3% to a current price of $148.86. This decline comes amid a challenging market environment, with the stock trading between a 52-week high of $297.61 and a low of $102.36.

GF Value™ verdict: MOD is currently 3.1% undervalued as its GF Value™ is estimated at $153.63.GF Score™ is 86/100, indicating a strong overall performance relative to industry peers.Notable signal: Insiders have sold $36.1 million worth of shares over the past 12 months without any buying activity.Is MOD Overvalued or Undervalued?According to the GF Value™, which is GuruFocus' proprietary estimate of a stock's intrinsic value based on historical trading multiples, past business growth, and future performance, Modine Manufacturing Co appears to be slightly undervalued at this time. The current price of $148.86 is 3.1% below the GF Value™ of $153.63, indicating a modest margin of safety for potential investors. The GF Valuation label categorizes MOD as fairly valued, suggesting that while there is some undervaluation, caution should be exercised due to the overall market conditions and insider selling trends.

This minor undervaluation presents an opportunity for those considering an investment in MOD, but it is important to recognize the risks associated with the stock's recent price declines and the lack of insider buying, which may signal caution among those closest to the company.

How Does MOD's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)56.1x25.7xForward P/E20.5xN/AModine's current P/E (TTM) of 56.1x is significantly above its 5-year median P/E of 25.7x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value, it is trading at a relatively high multiple compared to its earnings history. The forward P/E of 20.5x indicates that there may be expectations for improved earnings in the near future, but investors should consider the implications of the high current P/E in the context of market conditions.

What Does MOD's GF Score™ Tell Us?The GF Score™ measures a company's overall financial health and performance, taking into account various factors such as financial strength, profitability, growth, valuation, and momentum. Modine's GF Score™ of 86/100 reflects a strong position within its industry, particularly highlighted by its growth rank of 8/10, indicating solid growth potential. However, its financial strength and profitability ranks are both at 7/10, suggesting that while the company is performing well, there are areas for improvement.

MetricRatingGF Score™86Financial Strength7/10Profitability7/10Growth8/10Valuation7/10Momentum7/10The combination of a strong growth rank and solid scores in profitability and valuation indicates that Modine is well-positioned for future performance. However, the financial strength score suggests a need for caution, given that it may not have the strongest balance sheet in the sector. This mixture of strengths and weaknesses provides a nuanced view of Modine's potential moving forward.

What Are Gurus and Insiders Doing with MOD?Currently, 6 gurus hold shares of Modine Manufacturing Co, with 2 adding to their positions and 5 trimming their holdings in recent quarters. This mixed activity from institutional investors suggests a divergence of opinion on the stock's future performance.

On the insider front, the selling of $36.1 million in shares over the past 12 months without any buying activity raises concerns about the company's outlook from those who have intimate knowledge of its operations. This trend of selling signals a lack of confidence among insiders, which could be a red flag for potential investors.

What This Means for InvestorsBased on the current price relative to the GF Value™, Modine Manufacturing Co MOD is slightly undervalued at 3.1% below its intrinsic value estimate of $153.63. However, considering the high current P/E ratio and the recent insider selling, potential investors should weigh these factors carefully before making decisions. The stock's performance history and mixed signals from institutional and insider activity suggest a cautious approach may be warranted.

For a deeper dive into Modine Manufacturing Co MOD and to stay updated on its evolving financial health, visit the Modine Manufacturing Co (MOD) stock page, and explore the GF Value™ page for more insights.

Frequently Asked QuestionsWhat is MOD's GF Score™?

MOD's GF Score™ is 86/100, indicating a strong overall performance relative to its industry peers, particularly in growth potential.

Is MOD overvalued or undervalued?

MOD is currently 3.1% undervalued based on the GF Value™ of $153.63 compared to its current price of $148.86.

What is MOD's P/E ratio?

MOD's current P/E (TTM) is 56.1x, which is significantly above its 5-year median of 25.7x, indicating it is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Modine (MOD - Free Report) closed the most recent trading day at $157.40, moving -8.79% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.

Prior to today's trading, shares of the heating and cooling products maker had lost 3.52% lagged the Auto-Tires-Trucks sector's loss of 1.09% and the S&P 500's gain of 2.06%.

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 $1.47, marking a 38.68% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $964.62 million, showing a 30.55% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.68 per share and a revenue of $4.04 billion, demonstrating changes of +52.99% and +27.01%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Modine. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 0.41% higher. Right now, Modine possesses a Zacks Rank of #2 (Buy).

Investors should also note Modine's current valuation metrics, including its Forward P/E ratio of 22.47. This indicates a premium in contrast to its industry's Forward P/E of 11.74.

It's also important to note that MOD currently trades at a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment was holding an average PEG ratio of 0.73 at yesterday's closing price.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 197, positioning it in the bottom 20% 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.

, /PRNewswire/ -- Leidos (NYSE: LDOS) has received a one-year extension to its Logistics Commodities and Services Transformation (LCST) contract with the Ministry of Defence (MOD), continuing its critical logistics support to the UK Armed Forces through June 2029.

Convoy of British army Heavy Utility Trucks

The extension builds on more than a decade of collaboration between Leidos, the MOD and Team Leidos partners and suppliers to strengthen the UK defence supply chain. During the extension, Leidos will continue to protect service continuity while advancing supply chain resilience, inventory visibility, digital capability, operational support and value for money.

Since 2015, Leidos has served as the prime contractor for LCST, providing end-to-end logistics support, including:

Managing more than 70,000 commodity NATO Stock Numbers
Supporting distribution to more than 600 locations worldwide
Delivering an estimated £400 million in benefits to the MOD
Managing the £83 million Defence Fulfilment Centre at MOD Donnington
LCST has helped modernise defence logistics by improving inventory visibility and expanding the use of data across the supply chain. The programme has also supported the MOD through periods of significant demand, including the COVID-19 pandemic, global supply chain disruption and urgent operational requirements related to Ukraine.

Adam Clarke, Chief Executive Officer, Leidos UK & Europe, said:

"LCST plays an important role in providing reliable and resilient logistics support, helping ensure the UK Armed Forces have the supplies they need to operate with confidence at home and overseas."

"Our focus remains on dependable day-to-day delivery while continuing to improve the defence supply chain. This extension also recognises the commitment of colleagues across Leidos, the MOD, Team Leidos partners and the wider supplier base whose work supports defence readiness every day."

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Leidos UK & Europe is a leading partner to the UK and Scottish governments, supporting national security, defence and logistics programmes, as well as clients in transportation and energy. Headquartered in Reston, Virginia, Leidos has approximately 50,000 employees globally and reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact

Vicki Cordon
+44 7812 406 306
[email protected]
 

SOURCE Leidos

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Modine (MOD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Modine currently has an average brokerage recommendation (ABR) of 1.18, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.18 approximates between Strong Buy and Buy.

Of the 11 recommendations that derive the current ABR, 10 are Strong Buy, representing 90.9% of all recommendations.

Brokerage Recommendation Trends for MOD

Check price target & stock forecast for Modine here>>>

The ABR suggests buying Modine, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is MOD Worth Investing In?In terms of earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has increased 0.4% over the past month to $7.68.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Modine may serve as a useful guide for investors.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Modine (MOD - Free Report) Modine Manufacturing Company designs, engineers, and manufactures mission-critical thermal management products that heat, cool, and ventilate across commercial, industrial, and vehicular end markets. The company provides customer-centric systems, services, and components spanning HVAC (heating, ventilating, air conditioning) and refrigeration applications, along with engineered heat transfer systems and components for on- and off-highway OEMs.

MOD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Auto-Tires-Trucks stock. MOD has a Momentum Style Score of A, and shares are up 1.4% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $7.65 per share. MOD also boasts an average earnings surprise of +15.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MOD should be on investors' short list.

Modine (MOD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this heating and cooling products maker have returned +1.6%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Automotive - Original Equipment industry, which Modine falls in, has lost 5.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Modine is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +37.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $7.65 for the current fiscal year indicates a year-over-year change of +52.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.76 indicates a change of +40.7% from what Modine is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Modine is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Modine, the consensus sales estimate for the current quarter of $964.62 million indicates a year-over-year change of +30.6%. For the current and next fiscal years, $4.04 billion and $4.77 billion estimates indicate +27.1% and +17.9% changes, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $874.1 million in the last reported quarter, representing a year-over-year change of +28%. EPS of $1.53 for the same period compares with $1.06 a year ago.

Compared to the Zacks Consensus Estimate of $875.57 million, the reported revenues represent a surprise of -0.17%. The EPS surprise was +20.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Modine (MOD - Free Report) Modine Manufacturing Company designs, engineers, and manufactures mission-critical thermal management products that heat, cool, and ventilate across commercial, industrial, and vehicular end markets. The company provides customer-centric systems, services, and components spanning HVAC (heating, ventilating, air conditioning) and refrigeration applications, along with engineered heat transfer systems and components for on- and off-highway OEMs.

MOD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. MOD has a Growth Style Score of A, forecasting year-over-year earnings growth of 52.4% for the current fiscal year.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.02 to $7.65 per share. MOD boasts an average earnings surprise of +15.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MOD should be on investors' short list.

Modine (MOD - Free Report) closed the most recent trading day at $193.11, moving -1.45% from the previous trading session. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.

Coming into today, shares of the heating and cooling products maker had gained 4.23% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.22%, while the S&P 500 gained 1.26%.

Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. In that report, analysts expect Modine to post earnings of $1.46 per share. This would mark year-over-year growth of 37.74%. In the meantime, our current consensus estimate forecasts the revenue to be $964.62 million, indicating a 30.55% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.65 per share and revenue of $4.04 billion. These totals would mark changes of +52.39% and +27.06%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Modine presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Modine is holding a Forward P/E ratio of 25.62. This denotes a premium relative to the industry average Forward P/E of 12.56.

It is also worth noting that MOD currently has a PEG ratio of 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.75 based on yesterday's closing prices.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 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.

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

On September 21, 2026, Modine Manufacturing Co MOD shares rose 4.7% to a current price of $197.62. This move comes amid a 52-week trading range of $111.18 to $323.25, indicating significant volatility and investor interest in the stock. The recent price increase reflects a year-to-date gain of 48.0% and a one-year rise of 27.5%.

GF Value™ verdict: $197.62 vs. $158.32, indicating the stock is 24.8% overvalued.GF Score™: 86/100 (Strong), showing solid overall fundamentals.Notable signal: Insiders sold $36.1M in stock over the past 12 months, with no purchases reported.Is MOD Overvalued or Undervalued?Based on the current price of $197.62, Modine Manufacturing Co MOD is assessed as being overvalued according to the GF Value™, which estimates its fair value at $158.32. This results in a margin of safety of 24.8%, suggesting that the stock is trading at a premium compared to its intrinsic value. GuruFocus' GF Value™ is calculated using a proprietary method that considers historical trading multiples, past business growth, and estimates of future performance. The designation of "modestly overvalued" reflects a potential risk for investors, as buying into stocks at inflated prices can lead to lower returns if the market corrects.

As the market perceives strong growth prospects for MOD, investors should be cautious. The significant divergence between the current price and GF Value™ indicates that the stock may not offer an attractive entry point for new investors, especially considering the lack of insider buying, which could signal a lack of confidence from company executives. This situation requires careful evaluation of the company's future performance to justify such a high valuation.

How Does MOD's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)74.5x26.3xForward P/E26.3xN/AModine's current P/E ratio of 74.5x is significantly higher than its 5-year median P/E of 26.3x, suggesting that the stock is trading at a premium relative to its historical valuation. This analysis aligns with the GF Value™ verdict of being overvalued, as the current P/E is 183% above its historical median. Such a high P/E ratio could indicate that the market has high expectations for future growth, which may or may not materialize.

What Does MOD's GF Score™ Tell Us?The GF Score™ is a comprehensive metric that reflects a company's financial health, profitability, growth potential, valuation, and momentum. Modine's GF Score™ of 86/100 indicates strong fundamentals, with the following sub-ranks:

MetricRatingGF Score™86Financial Strength7/10Profitability7/10Growth8/10Valuation6/10Momentum8/10The scores indicate that Modine has strong growth potential and good momentum, with the highest scores in the Growth (8/10) and Momentum (8/10) categories. However, the Valuation rank stands at 6/10, reflecting concerns about the stock's current pricing relative to its intrinsic value. Overall, while the company exhibits strong fundamentals, the high valuation may pose risks for potential investors.

What Are Gurus and Insiders Doing with MOD?Currently, six gurus hold positions in Modine Manufacturing Co MOD, with two increasing their stakes and five reducing their positions in recent quarters. This mixed activity suggests a divided opinion among expert investors regarding the stock's future prospects. The significant insider selling of $36.1 million over the past year, without any buying activity, raises concerns about the confidence of the company's executives in its future performance. Such insider selling can be indicative of a lack of optimism about the company's valuation and future growth, potentially signaling caution for prospective investors.

What This Means for InvestorsGiven the current price of $197.62 compared to the GF Value™ of $158.32, Modine Manufacturing Co MOD is considered overvalued. The significant premium raises potential risks for investors, particularly in light of the lack of insider buying and the high P/E ratio compared to historical norms. For more detailed insights and analysis, you can explore the Modine Manufacturing Co (MOD) stock page, as well as the GF Value™ page for deeper valuation insights.

Frequently Asked QuestionsWhat is MOD's GF Score™?

MOD has a GF Score™ of 86/100, indicating strong overall fundamentals and financial health.

Is MOD overvalued or undervalued?

MOD is considered overvalued, with a GF Value™ estimate of $158.32 compared to the current price of $197.62.

What is MOD's P/E ratio?

MOD's P/E ratio is 74.5x, which is significantly higher than its 5-year median P/E of 26.3x, indicating that it is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Modine (MOD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this heating and cooling products maker have returned -10.9% over the past month versus the Zacks S&P 500 composite's -2.4% change. The Zacks Automotive - Original Equipment industry, to which Modine belongs, has lost 6.2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Modine is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +37.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $7.65 points to a change of +52.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $10.76 indicates a change of +40.7% from what Modine is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Modine.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Modine, the consensus sales estimate for the current quarter of $964.62 million indicates a year-over-year change of +30.6%. For the current and next fiscal years, $4.04 billion and $4.77 billion estimates indicate +27.1% and +17.9% changes, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $874.1 million in the last reported quarter, representing a year-over-year change of +28%. EPS of $1.53 for the same period compares with $1.06 a year ago.

Compared to the Zacks Consensus Estimate of $875.57 million, the reported revenues represent a surprise of -0.17%. The EPS surprise was +20.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Modine's executive leadership team will provide an update to the company's multi-year growth strategy and new financial targets

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today that it will host an Analyst and Investor Day in Chicago, Illinois, on November 18, 2026.

Modine President and Chief Executive Officer, Neil D. Brinker, and Executive Vice President and Chief Financial Officer, Michael B. (Mick) Lucareli, will be joined by other members of the executive management team to present an update to the company's multi-year growth strategy and new financial targets following the planned spin-off of the Performance Technologies segment. Due to space limitations, in-person attendance is by invitation only and advanced registration is required. Information on registering for in-person attendance will be provided in the coming weeks.

A live webcast will be accessible at https://investors.modine.com at the time of the event. Interested parties unable to attend in person or watch the live webcast will be able to view and listen to an archived copy of the webcast, which will be available following the conclusion of the event.

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 13,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit www.modine.com. 

Kathleen Powers
(262) 636-1687
[email protected]

SOURCE Modine

Amundi increased its holdings in Modine Manufacturing Company (NYSE:MOD – Free Report) by 1.6% in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 316,781 shares of the auto parts company’s stock after buying an additional 5,088 shares during the quarter. Amundi owned about 0.60% of Modine Manufacturing worth $84,587,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of MOD. V Square Quantitative Management LLC purchased a new stake in shares of Modine Manufacturing during the 1st quarter valued at about $25,000. Kemnay Advisory Services Inc. purchased a new position in shares of Modine Manufacturing during the fourth quarter valued at approximately $25,000. Sunbelt Securities Inc. bought a new position in Modine Manufacturing during the third quarter valued at approximately $39,000. Rakuten Securities Inc. bought a new position in Modine Manufacturing during the second quarter valued at approximately $40,000. Finally, PenderFund Capital Management Ltd. purchased a new stake in Modine Manufacturing in the second quarter worth approximately $42,000. Institutional investors own 95.23% of the company’s stock.

Modine Manufacturing Stock Down 3.0% Shares of MOD stock opened at $186.59 on Thursday. The company has a current ratio of 2.04, a quick ratio of 1.22 and a debt-to-equity ratio of 0.39. Modine Manufacturing Company has a 12 month low of $111.18 and a 12 month high of $323.25. The stock has a market cap of $9.91 billion, a P/E ratio of 70.15, a P/E/G ratio of 0.63 and a beta of 1.74. The company has a 50 day simple moving average of $208.82 and a two-hundred day simple moving average of $233.79.

Modine Manufacturing (NYSE:MOD – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The auto parts company reported $1.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.27 by $0.26. The firm had revenue of $874.10 million during the quarter, compared to the consensus estimate of $878.69 million. Modine Manufacturing had a net margin of 4.28% and a return on equity of 25.59%. The company’s revenue for the quarter was up 28.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.95 EPS. On average, research analysts expect that Modine Manufacturing Company will post 7.65 earnings per share for the current year. Insider Activity at Modine Manufacturing In other Modine Manufacturing news, Director Eric Ashleman sold 15,000 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $288.54, for a total transaction of $4,328,100.00. Following the completion of the sale, the director owned 42,350 shares of the company’s stock, valued at approximately $12,219,669. The trade was a 26.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Eric McGinnis sold 1,020 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $295.06, for a total value of $300,961.20. Following the sale, the insider directly owned 28,364 shares of the company’s stock, valued at $8,369,081.84. This represents a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 54,302 shares of company stock worth $15,928,759. Corporate insiders own 1.92% of the company’s stock.

Analyst Ratings Changes A number of research firms have commented on MOD. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Modine Manufacturing in a research report on Tuesday, August 25th. KeyCorp restated an “overweight” rating and issued a $280.00 price target on shares of Modine Manufacturing in a research note on Wednesday, September 2nd. UBS Group lifted their price objective on Modine Manufacturing to $310.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Oppenheimer upped their price objective on Modine Manufacturing from $271.00 to $325.00 and gave the company an “outperform” rating in a research report on Thursday, May 28th. Finally, Wall Street Zen downgraded Modine Manufacturing from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Modine Manufacturing presently has an average rating of “Moderate Buy” and an average target price of $320.14.

Read Our Latest Research Report on Modine Manufacturing

(Free Report)

Modine Manufacturing Company (NYSE:MOD) is a global provider of thermal management solutions serving automotive, commercial transportation, heavy-duty off-highway, industrial, HVAC and refrigeration markets. The company designs, manufactures, tests and markets a broad array of heat-transfer products that manage temperature and energy efficiency for engines, power electronics and building climate control systems.

Its product portfolio includes heat exchangers, condensers, radiators, evaporators, charge air coolers, fan systems and associated controls.

See Also Five stocks we like better than Modine Manufacturing Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord

Receive News & Ratings for Modine Manufacturing Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Modine Manufacturing and related companies with MarketBeat.com's FREE daily email newsletter.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Modine (MOD - Free Report) .

Modine currently has an average brokerage recommendation (ABR) of 1.20, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.20 approximates between Strong Buy and Buy.

Of the 10 recommendations that derive the current ABR, nine are Strong Buy, representing 90% of all recommendations.

Brokerage Recommendation Trends for MOD

Check price target & stock forecast for Modine here>>>

The ABR suggests buying Modine, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MOD a Good Investment?Looking at the earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.65.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Modine.

Callan Family Office LLC purchased a new position in Modine Manufacturing Company (NYSE:MOD – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 10,937 shares of the auto parts company’s stock, valued at approximately $2,920,000.

Other hedge funds have also recently made changes to their positions in the company. Lazard Asset Management LLC purchased a new stake in shares of Modine Manufacturing during the first quarter valued at about $1,722,000. Ranger Investment Management L.P. bought a new stake in shares of Modine Manufacturing in the 1st quarter valued at about $15,557,000. Allspring Global Investments Holdings LLC grew its position in shares of Modine Manufacturing by 253.2% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 306,005 shares of the auto parts company’s stock worth $68,230,000 after buying an additional 219,373 shares during the last quarter. DUTCH ASSET Corp grew its position in shares of Modine Manufacturing by 122.2% in the 1st quarter. DUTCH ASSET Corp now owns 18,709 shares of the auto parts company’s stock worth $4,055,000 after buying an additional 10,290 shares during the last quarter. Finally, Lisanti Capital Growth LLC bought a new position in shares of Modine Manufacturing during the 2nd quarter worth approximately $6,402,000. 95.23% of the stock is currently owned by hedge funds and other institutional investors.

Modine Manufacturing Stock Performance Shares of Modine Manufacturing stock opened at $198.03 on Friday. The firm has a market capitalization of $10.52 billion, a P/E ratio of 74.45, a PEG ratio of 0.65 and a beta of 1.71. The company has a quick ratio of 1.22, a current ratio of 2.04 and a debt-to-equity ratio of 0.39. The company has a 50 day moving average price of $232.44 and a 200 day moving average price of $236.03. Modine Manufacturing Company has a 52 week low of $111.18 and a 52 week high of $323.25.

Modine Manufacturing (NYSE:MOD – Get Free Report) last released its earnings results on Wednesday, July 29th. The auto parts company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.26. Modine Manufacturing had a net margin of 4.28% and a return on equity of 25.59%. The company had revenue of $874.10 million for the quarter, compared to the consensus estimate of $878.69 million. During the same quarter in the previous year, the firm earned $0.95 EPS. Modine Manufacturing’s revenue was up 28.0% compared to the same quarter last year. Sell-side analysts expect that Modine Manufacturing Company will post 7.65 EPS for the current year. Analysts Set New Price Targets A number of equities research analysts recently commented on MOD shares. Glj Research reissued a “buy” rating and set a $428.00 target price on shares of Modine Manufacturing in a research report on Monday, June 1st. DA Davidson reaffirmed a “buy” rating and issued a $330.00 price target on shares of Modine Manufacturing in a report on Monday, June 22nd. Wall Street Zen downgraded Modine Manufacturing from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Weiss Ratings upgraded Modine Manufacturing from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, May 28th. Finally, UBS Group raised their price objective on Modine Manufacturing to $310.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $320.14.

Check Out Our Latest Research Report on MOD

Insider Transactions at Modine Manufacturing In other news, VP Brian Jon Agen sold 38,282 shares of Modine Manufacturing stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $295.17, for a total transaction of $11,299,697.94. Following the completion of the sale, the vice president directly owned 66,343 shares in the company, valued at approximately $19,582,463.31. The trade was a 36.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric D. Ashleman sold 15,000 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $288.54, for a total transaction of $4,328,100.00. Following the sale, the director directly owned 42,350 shares in the company, valued at $12,219,669. This trade represents a 26.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 54,302 shares of company stock worth $15,928,759. Company insiders own 1.92% of the company’s stock.

(Free Report)

Modine Manufacturing Company (NYSE:MOD) is a global provider of thermal management solutions serving automotive, commercial transportation, heavy-duty off-highway, industrial, HVAC and refrigeration markets. The company designs, manufactures, tests and markets a broad array of heat-transfer products that manage temperature and energy efficiency for engines, power electronics and building climate control systems.

Its product portfolio includes heat exchangers, condensers, radiators, evaporators, charge air coolers, fan systems and associated controls.

Further Reading Five stocks we like better than Modine Manufacturing 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit?

Receive News & Ratings for Modine Manufacturing Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Modine Manufacturing and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Modine's fiscal Q1 sales rose 28% and adjusted EPS jumped 44%, but adjusted EBITDA margin fell to 12.2%.Data Centers revenue surged 90%, while component shortages helped drive margin down to 14.8%.Modine targets $650-$680 million in fiscal 2027 adjusted EBITDA and 100-200 bps of margin expansion. Modine Manufacturing (MOD - Free Report) is delivering strong revenue growth, particularly from its booming data center business. But can the company translate that growth into meaningful margin expansion? Its last quarter results suggest there is still work to do.

Modine’s first-quarter fiscal 2027 revenue rose 28% year over year to $874.1 million, while adjusted EPS jumped 44% to $1.53. Yet gross margin declined 340 basis points (bps) to 20.8%, while adjusted EBITDA margin fell 270 bps to 12.2%.

Data Centers: Growth Outpacing ProfitabilityThe biggest drag was the Data Centers business. Although segment revenue surged 90%, its adjusted EBITDA margin dropped to 14.8% from 22.1% a year earlier. Component shortages limited production and created labor inefficiencies and under-absorbed overhead. These issues reduced the segment’s margin by roughly 450-550 bps.

Modine views these pressures as temporary and expects Data Center margins to recover to 19-20% in the fiscal second quarter as component availability improves and production becomes more efficient. The company is also expanding supplier capacity and preparing its facilities to handle the strong demand reflected in its growing backlog.

Commercial HVAC: Buyouts Fuel Growth, Dilute MarginsCommercial HVAC sales rose 22% to $261.6 million, helped by higher coil sales to data center customers and $19.7 million of incremental revenue from acquired businesses. Organic sales grew a more modest 6%.

But adjusted EBITDA margin slipped to 15.9% from 18.1%, pressured by acquisition-related business mix, manufacturing consolidation inefficiencies and a greater share of lower-margin coil sales.

Management expects the segment's margin to improve sequentially through fiscal 2027. But for now, HVAC is telling a similar story to Data Centers: strong demand, growth outpacing profitability.

Performance Technologies: Weak Demand Meets Rising CostsPerformance Technologies is battling both sales and margin headwinds. Revenue declined 3% to $277.8 million, as weak automotive and commercial vehicle demand outweighed higher sales to power-generation customers, with organic sales down 4%.

Adjusted EBITDA fell 3% to $36.2 million and margin edged down 10 bps to 13%, as higher material and tariff costs outpaced contractual cost recoveries— though a $2 million reduction in SG&A partly offset the impact.

Unlike Data Centers and HVAC, this segment's challenge isn't converting growth into margin— it's stabilizing a shrinking base while inflation works against it.

Modine's Playbook for Closing the Margin GapTo address these pressures across the portfolio, Modine is consolidating product lines and manufacturing operations in Commercial HVAC while taking pricing actions to offset higher material and tariff costs. More broadly, the company's 80/20 strategy is simplifying operations and directing resources toward higher-return products and customers.

These initiatives are important because the company targets $650-$680 million in adjusted EBITDA for fiscal 2027, representing roughly 38-44% growth, along with at least 100-200 bps of margin expansion. It expects profitability to improve sequentially as data center volumes increase and cost-recovery measures take effect.

For investors, the next few quarters will therefore be critical. Modine has already demonstrated that it can generate impressive growth. The bigger test is whether supply-chain constraints ease quickly enough and whether HVAC and 80/20 initiatives gain enough traction for that growth to flow through to the bottom line across all three segments. Margins, not sales, will be the number to watch over Modine's next quarters.

How MOD Stacks Up Against the CompetitionVertiv Holdings (VRT - Free Report) : Its net sales rose 24.1% year over year to $3.27 billion in the last reported quarter, with organic growth of 18% supplemented by acquisitions and foreign exchange. Vertiv's profitability has kept pace with its top line. Its adjusted operating margin expanded 410 bps to 22.6%. Vertiv attributed the improvement to operational execution, productivity gains and favorable price-cost dynamics, even as tariffs and continued capacity and R&D investment worked against it.

Eaton Corp (ETN - Free Report) : its second-quarter 2026 revenue reached $8.53 billion, driven by 14% organic growth and a 7% contribution from acquisitions, with data centers being a major growth engine alongside broad-based demand across other markets. Eaton’s total segment margin came in at 23.1%, 10 bps above the high end of guidance, but still 80 bps below the prior-year quarter, as acquisition-related effects and higher amortization weighed on profitability. For full-year 2026, Eaton guided segment margins to 24.1-24.5%.

The Zacks Rundown on MOD StockOver the past six months, MOD shares are down 14%, while Eaton and Vertiv gained 15% and 8%, respectively.

6-Month Price Performance Comparison Image Source: Zacks Investment Research

Modine still trades at a discount to its peers— around 22x forward 12-month earnings, versus roughly 28x for Eaton and 32x for Vertiv.

MOD’s F12M Vs. Eaton & Vertiv Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Modine’s fiscal 2027 and 2028 EPS implies year-over-year growth of 52% and 41%, respectively.

Image Source: Zacks Investment Research

MOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in Automotive - Original Equipment stocks are likely familiar with China Yuchai (CYD - Free Report) and Modine (MOD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

China Yuchai and Modine are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that CYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CYD currently has a forward P/E ratio of 12.45, while MOD has a forward P/E of 27.39. We also note that CYD has a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MOD currently has a PEG ratio of 0.68.

Another notable valuation metric for CYD is its P/B ratio of 0.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MOD has a P/B of 9.2.

These are just a few of the metrics contributing to CYD's Value grade of A and MOD's Value grade of C.

CYD has seen stronger estimate revision activity and sports more attractive valuation metrics than MOD, so it seems like value investors will conclude that CYD is the superior option right now.

Modine's data-center growth is surging, but falling estimates, margin pressure and a stretched valuation leave little room for execution missteps.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Modine (MOD - Free Report) .

Modine currently has an average brokerage recommendation (ABR) of 1.20, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.20 approximates between Strong Buy and Buy.

Of the 10 recommendations that derive the current ABR, nine are Strong Buy, representing 90% of all recommendations.

Brokerage Recommendation Trends for MOD

Check price target & stock forecast for Modine here>>>

While the ABR calls for buying Modine, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MOD Worth Investing In?In terms of earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has declined 1.4% over the past month to $7.63.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Modine with a grain of salt.

Modine Manufacturing Company (MOD) Q1 2027 Earnings Call Transcript

Continued strength in core growth engines supports reaffirmed Fiscal 2027 outlook

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2026.

First Quarter Highlights:

Net sales of $874.1 million increased $191.3 million, or 28 percent, from the prior year Net earnings of $74.3 million increased $22.6 million, or 44 percent, from the prior year Adjusted EBITDA of $106.5 million increased $5.1 million, or 5 percent, from the prior year Earnings per share of $1.37 increased $0.42, or 44 percent, from the prior year Adjusted earnings per share of $1.53 increased $0.47, or 44 percent, from the prior year "Our targeted growth businesses continued to deliver strong, sustainable year-over-year top-line improvements, including Data Centers and Commercial HVAC revenue expansion of 90% and 22%, respectively," said Modine President and Chief Executive Officer, Neil D. Brinker. "As anticipated, our first quarter was impacted by the supply chain constraints we discussed last quarter, which limited production and temporarily reduced margins within our Data Centers segment. We are taking decisive actions to secure supply, including working closely with our partners to lock in volume requirements while simultaneously qualifying additional suppliers. These initiatives are yielding positive results, driving sequential volume and margin improvements as the quarter progressed. Our team continues to drive operational efficiency and ramp production across our manufacturing footprint, keeping us fully on track to meet future customer commitments and deliver on our full-year financial outlook."

First Quarter Financial Results

Net sales increased 28 percent to $874.1 million, compared with $682.8 million in the prior year. Sales growth was driven by higher sales in the Data Centers and Commercial HVAC segments, partially offset by lower sales in the Performance Technologies segment.

Gross profit increased 10 percent to $182.0 million and gross margin decreased by 340 basis points to 20.8 percent. Gross profit increased in the Data Centers and Commercial HVAC segments, while Performance Technologies experienced a decline in gross profit. The decrease in gross margin resulted from lower gross margins in all three business segments, as further discussed below.

Selling, general and administrative ("SG&A") expenses increased 22 percent to $103.3 million, but decreased as a percentage of sales. The increase in SG&A expenses was primarily due to higher expenses in the Data Centers segment to support growth, incremental expenses from acquisitions in the Commercial HVAC segment, costs related to the pending spin-off of the Performance Technologies segment, and higher expenses related to incentive compensation. 

Operating income decreased 1 percent to $74.8 million. The decrease was driven by higher SG&A expenses to support growth and to prepare for the spin-off of the Performance Technologies segment, partially offset by higher gross profit on higher sales volume, as compared to the prior year. The Company recorded $3.9 million of restructuring expenses during the quarter, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $7.1 million of costs related to the pending spin-off of the Performance Technologies segment. Adjusted EBITDA, which excludes restructuring expenses, disposition costs, certain other charges, interest expense, the benefit or provision for income taxes, and depreciation and amortization expense, was $106.5 million, an increase of $5.1 million, or 5 percent compared to the prior year. 

Earnings per share was $1.37, compared with $0.95 in the prior year, an increase of $0.42 or 44 percent. Adjusted earnings per share was $1.53, compared with adjusted earnings per share of $1.06 in the prior year, an increase of $0.47 or 44 percent. This included a favorable income tax benefit related to shares issued for stock-based incentive compensation awards during the quarter, which is  expected to be largely offset by the negative impact of nondeductible compensation within the fiscal year.    

First Quarter Segment Review

Data Centers segment sales were $348.6 million, compared with $183.7 million one year ago, an increase of 90 percent. This increase was primarily driven by higher sales to hyperscale customers in North America. The segment reported gross margin of 20.2 percent, which was 960 basis points lower than the prior year. This decrease was primarily due to higher expenses related to the capacity expansion in North America combined with the temporary impact of production inefficiencies due to supply chain constraints, higher material costs, and higher warranty expense, as the prior year benefited from the favorable settlement of a warranty claim. SG&A expenses decreased as a percentage of sales due to the significant increase in revenue. The segment reported operating income of $46.3 million, a 33 percent increase from the prior year, and adjusted EBITDA of $51.7 million, an increase of 27 percent from the prior year. Commercial HVAC segment sales were $261.6 million, compared with $214.2 million one year ago, an increase of 22 percent. This increase was primarily driven by higher coil sales to data center customers and $19.7 million of incremental sales from acquired businesses. The segment reported gross margin of 24.4 percent, which was 280 basis points lower than the prior year, primarily due to unfavorable sales mix and temporary inefficiencies due to production transfers. The segment reported operating income of $31.4 million, a 2 percent decrease from the prior year, and adjusted EBITDA of $41.6 million, a 7 percent increase from the prior year. Performance Technologies segment sales were $277.8 million, compared with $285.5 million one year ago, a decrease of 3 percent. This decrease primarily resulted from lower sales to automotive and commercial vehicle customers due to market weakness, partially offset by higher sales to power generation customers. The segment reported gross margin of 17.6 percent, which was 60 basis points lower than the prior year, primarily due to higher material and tariff costs. The segment reported operating income of $27.6 million, a 4 percent increase from the prior year, and adjusted EBITDA of $36.2 million, a 3 percent decrease from the prior year. Balance Sheet & Liquidity

Net cash provided by operating activities for the quarter ended June 30, 2026, was $41.4 million, an increase of $13.7 million compared to the prior year. Free cash flow for the quarter ended June 30, 2026, was a use of $5.0 million, a decrease of $5.2 million from the prior year.  This decrease was primarily due to higher capital expenditures to increase production capacity in the Data Centers segment, partially offset by favorable net changes in working capital. Cash payments for restructuring activities and disposition costs totaled $14.9 million during the quarter ended June 30, 2026.

Total debt was $528.2 million as of June 30, 2026. Cash and cash equivalents totaled $95.3 million as of June 30, 2026. Net debt was $432.9 million as of June 30, 2026, an increase of $70.1 million from the end of fiscal 2026. This increase resulted from purchases of  stock in conjunction with our equity compensation plan. Under this plan, participants have the option to sell back shares of their vested equity awards to satisfy individual tax withholding obligations. These repurchased shares are held as treasury stock, which reduces the number of shares outstanding used to calculate earnings per share.   

Outlook

"Our financial outlook for Fiscal 2027 remains unchanged, and we remain confident in our ability to deliver another year of record-breaking results," said Modine President and Chief Executive Officer, Neil D. Brinker. "In response to the near-term supply chain challenges in our Data Centers segment, we are taking decisive actions to resolve these bottlenecks and have already made significant progress. Demand for our products remains robust as evidenced by three consecutive quarters of record order intake leading to our backlog nearly doubling over the past year. Now we are focused on operational execution across the enterprise, which will allow us to deliver on our near- and long-term goals. Simultaneously, we are also progressing on our long-term strategic transformation. Our planned spin-off and merger of the Performance Technologies business with Gentherm remains firmly on schedule to close in the fourth calendar quarter of this year, having cleared several major milestones this past quarter."

The current full-year guidance remains unchanged and continues to reflect the Performance Technologies business for the entirety of fiscal 2027. Following the close of the transaction (expected in the fourth quarter of calendar 2026), Modine will issue an updated outlook reflecting the continuing business.  

Fiscal 2027

Current Outlook

Net Sales

+20% to 35%

Adjusted EBITDA

$650 to $680 million

Conference Call and Webcast

Modine will conduct a conference call and live webcast, with a slide presentation, on Thursday, July 30, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss its first quarter fiscal year 2027 financial results. The webcast and accompanying slides will be available on the Investor Relations section of the Modine website at www.modine.com. Participants are encouraged to log on to the webcast and conference call about ten minutes prior to the start of the event. A replay of the audio and slides will be available on the Investor Relations section of the Modine website at www.modine.com on or after July 30, 2026. A call-in replay will be available through midnight on August 6, 2026, at 877-660-6853, (international replay 201-612-7415); Conference ID# 13761279. The Company will post a transcript of the call on its website on or after August 3, 2026.

About Modine

For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 13,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit www.modine.com.

Forward-Looking Statements

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's most recent Annual Report on Form 10-K. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to geopolitical tensions and military conflicts, including the conflict between the U.S. and Iran, inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, and public health threats; the overall health and pricing focus of our customers; changes or threats to the market growth prospects for our customers; our ability to successfully exit portions of our business that do not align with our strategic plans, including the various risks related to the pending Reverse Morris Trust transaction with Gentherm; our ability to realize the sales growth and return on investments anticipated in our Data Centers segment and our ability to execute on other organic growth opportunities and acquisitions; our ability to realize anticipated benefits, including improved profit margins and cash flow, from strategic initiatives and our continued application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses, particularly in our Data Centers segment, while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, product transfers and product warranty and liability claims; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets and the impact of changes in tax regulations; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

Non-GAAP Financial Disclosures

Adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, net debt, free cash flow, organic sales and organic sales growth (which are defined below) as used in this press release are not measures that are defined in generally accepted accounting principles (GAAP). These non-GAAP measures are used by management as performance measures to evaluate the Company's overall financial performance and liquidity. These measures are not, and should not be viewed as, substitutes for the applicable GAAP measures, and may be different from similarly titled measures used by other companies.

Definition – Adjusted EBITDA and adjusted EBITDA margin

The Company defines adjusted EBITDA as net earnings excluding interest expense, the provision or benefit for income taxes, depreciation and amortization expenses, other income and expense, restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and certain other gains or charges. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales. The Company believes that adjusted EBITDA and adjusted EBITDA margin provide relevant measures of profitability and earnings power. The Company views these financial metrics as being useful in assessing operating performance from period to period by excluding certain items that it believes are not representative of its core business. Adjusted EBITDA, when calculated for the business segments, is defined as operating income excluding depreciation and amortization expenses, restructuring expenses, impairment charges, and certain other gains or charges.

Definition – Adjusted earnings per share

Diluted earnings per share plus restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and excluding changes in income tax valuation allowances and certain other gains or charges. Adjusted earnings per share is an overall performance measure, not including costs associated with restructuring, acquisitions, and dispositions and certain other gains or charges.

Definition – Net debt

The sum of debt due within one year and long-term debt, less cash and cash equivalents. Net debt is an indicator of the Company's debt position after considering on-hand cash balances.

Definition – Free cash flow

Free cash flow represents net cash provided by operating activities less expenditures for property, plant and equipment. Free cash flow presents cash generated from operations during the period that is available for strategic capital decisions.

Definition – Organic sales and organic sales growth

Net sales and net sales growth can be impacted by acquisitions, dispositions, and foreign currency exchange rate fluctuations. The Company defines organic sales as external net sales excluding the impact of acquisitions and the effects of foreign currency exchange rate fluctuations. Organic sales growth represents the percentage change of organic sales compared to prior year external net sales, excluding the impact of dispositions. The effect of exchange rate changes is calculated by using the same foreign currency exchange rates as those used to translate financial data for the prior period. The Company adjusts for acquisitions and dispositions by excluding net sales in the current and prior periods, respectively, for which there are no comparable sales in the reported periods. These sales growth measures provide a more consistent indication of our performance, without the effects of foreign currency exchange rate fluctuations or acquisitions and dispositions. 

Forward-looking non-GAAP financial measure

The Company's fiscal 2027 guidance includes adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The fiscal 2027 guidance includes the Company's estimates for interest expense of approximately $24 to $27 million, a provision for income taxes of approximately $130 to $140 million, and depreciation and amortization expense of approximately $87 to $92 million. The non-GAAP financial measure also excludes certain cash and non-cash expenses or gains. These expenses and gains may be significant and include items such as restructuring expenses (including severance and equipment transfer costs), impairment charges, acquisition and disposition costs, and certain other items.  These expenses for the first three months of fiscal 2027 are presented on page 8.  In connection with the pending Reverse Morris Trust transaction with Gentherm, the Company expects to incur approximately $25 to $35 million of additional costs during the remainder of fiscal 2027, primarily for transaction advisory, legal, accounting, tax and other professional services.  Estimates of other expenses and gains for the remainder of fiscal 2027 are not available due to the low visibility and unpredictability of these items.

Modine Manufacturing Company

Consolidated statements of operations (unaudited)

(In millions, except per share amounts)

Three months ended June 30, 

2026

2025

Net sales

$

874.1

$

682.8

Cost of sales

692.1

517.4

Gross profit

182.0

165.4

Selling, general & administrative expenses

103.3

84.9

Restructuring expenses

3.9

4.8

Operating income

74.8

75.7

Interest expense

(6.4)

(5.8)

Other income (expense) – net

0.2

(4.2)

Earnings before income taxes

68.6

65.7

Benefit (provision) for income taxes

5.7

(14.0)

Net earnings

74.3

51.7

Net earnings attributable to noncontrolling interest

(0.4)

(0.5)

Net earnings attributable to Modine

$

73.9

$

51.2

Net earnings per share attributable to Modine shareholders – diluted

$

1.37

$

0.95

Weighted-average shares outstanding – diluted

54.0

53.7

Condensed consolidated balance sheets (unaudited)

(In millions)

June 30, 2026

March 31, 2026

Assets

Cash and cash equivalents

$

95.3

$

73.5

Trade receivables

659.9

731.0

Inventories

609.0

506.1

Other current assets

162.7

105.5

Total current assets

1,526.9

1,416.1

Property, plant and equipment – net

536.1

520.9

Intangible assets – net

190.2

197.0

Goodwill

290.2

292.1

Deferred income taxes

88.7

85.3

Other noncurrent assets

163.3

163.2

Total assets

$

2,795.4

$

2,674.6

Liabilities and shareholders' equity

Debt due within one year

$

52.0

$

51.4

Accounts payable

508.9

464.8

Other current liabilities

188.9

212.7

Total current liabilities

749.8

728.9

Long-term debt

476.2

384.9

Other noncurrent liabilities

359.6

358.0

Total liabilities

1,585.6

1,471.8

Total equity

1,209.8

1,202.8

Total liabilities & equity

$

2,795.4

$

2,674.6

Modine Manufacturing Company

Condensed consolidated statements of cash flows (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Cash flows from operating activities:

Net earnings

$

74.3

$

51.7

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

20.7

19.0

Stock-based compensation expense

8.0

5.3

Deferred income taxes

(3.8)

0.7

Other – net

1.1

2.6

Changes in operating assets and liabilities:

Trade accounts receivable

68.3

(10.6)

Inventories

(105.4)

(61.6)

Accounts payable

58.0

46.7

Other assets and liabilities

(79.8)

(26.1)

Net cash provided by operating activities

41.4

27.7

Cash flows from investing activities:

Expenditures for property, plant and equipment

(46.4)

(27.5)

Payments for business acquisitions, net of cash acquired

—

(119.0)

Other – net

—

2.5

Net cash used for investing activities

(46.4)

(144.0)

Cash flows from financing activities:

Net increase in debt

91.9

172.0

Purchases of treasury stock

(64.6)

(5.1)

Other – net

(0.2)

—

Net cash provided by financing activities

27.1

166.9

Effect of exchange rate changes on cash

(0.3)

2.2

Net increase in cash, cash equivalents and restricted cash

21.8

52.8

Cash, cash equivalents and restricted cash – beginning of period

73.7

71.9

Cash, cash equivalents and restricted cash – end of period

$

95.5

$

124.7

Modine Manufacturing Company

Segment operating results (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Net sales:

Data Centers

$

348.6

$

183.7

Commercial HVAC

261.6

214.2

Performance Technologies

277.8

285.5

Segment total

888.0

683.4

Corporate and eliminations

(13.9)

(0.6)

Net sales

$

874.1

$

682.8

Three months ended June 30, 

2026

2025

$'s

% of sales

$'s

% of sales

Gross profit:

Data Centers

$

70.3

20.2

%

$

54.7

29.8

%

Commercial HVAC

63.9

24.4

%

58.2

27.2

%

Performance Technologies

48.8

17.6

%

51.9

18.2

%

Segment total

183.0

20.6

%

164.8

24.1

%

Corporate and eliminations

(1.0)

—

0.6

—

Gross profit

$

182.0

20.8

%

$

165.4

24.2

%

Three months ended June 30, 

2026

2025

Operating income:

Data Centers

$

46.3

$

34.7

Commercial HVAC

31.4

32.2

Performance Technologies

27.6

26.5

Segment total

105.3

93.4

Corporate and eliminations

(30.5)

(17.7)

Operating income

$

74.8

$

75.7

Modine Manufacturing Company

Adjusted financial results (unaudited)

(In millions, except per share amounts)

Three months ended June 30, 

2026

2025

Net earnings

$

74.3

$

51.7

Interest expense

6.4

5.8

(Benefit) provision for income taxes

(5.7)

14.0

Depreciation and amortization expense

20.7

19.0

Other (income) expense  – net

(0.2)

4.2

Restructuring expenses (a)

3.9

4.8

Disposition costs (b)

7.1

—

Acquisition and integration costs (c)

—

1.9

Adjusted EBITDA

$

106.5

$

101.4

Net earnings per share attributable to Modine shareholders – diluted

$

1.37

$

0.95

Restructuring expenses (a)

0.06

0.08

Disposition costs (b)

0.10

—

Acquisition and integration costs (c)

—

0.03

Adjusted earnings per share

$

1.53

$

1.06

____

(a)

Restructuring expenses primarily consist of employee severance expenses and equipment transfer costs.  The tax benefit related to restructuring expenses during both the first quarter of fiscal 2027 and fiscal 2026 was $0.7 million. 

(b)

Disposition costs primarily relate to the pending Reverse Morris Trust transaction with Gentherm and include fees for legal, accounting, tax, and other professional services and other costs directly related to the transaction.  The tax benefit related to the disposition costs during the first quarter of fiscal 2027 was $1.7 million.

(c)

Acquisition and integration costs primarily related to the Company's fiscal 2026 acquisitions, including L.B. White, AbsolutAire, and Climate by Design International.  The costs primarily included fees for legal, accounting, and other professional services and costs directly associated with integration activities.  In addition, the adjustment for the first quarter of fiscal 2026 includes $0.2 million for the impact of an inventory purchase accounting adjustment.  The tax benefit related to the acquisition-related costs and adjustments during the first quarter of fiscal 2026 was $0.4 million. 

Modine Manufacturing Company

Segment adjusted financial results (unaudited)

(In millions)

Three months ended June 30, 2026

Three months ended June 30, 2025

Data

Commercial

Performance 

Corporate and 

Data

Commercial

Performance 

Corporate and 

Centers

HVAC

Technologies

eliminations

Total

Centers

HVAC

Technologies

eliminations

Total

Operating income

$

46.3

$

31.4

$

27.6

$

(30.5)

$

74.8

$

34.7

$

32.2

$

26.5

$

(17.7)

$

75.7

Depreciation and
amortization expense

5.4

8.0

6.9

0.4

20.7

5.7

5.5

7.5

0.3

19.0

Restructuring expenses (a)

—

2.2

1.7

—

3.9

0.2

1.1

3.5

—

4.8

Disposition costs (a)

—

—

—

7.1

7.1

—

—

—

—

—

Acquisition and
integration costs (a)

—

—

—

—

—

—

—

—

1.9

1.9

Adjusted EBITDA

$

51.7

$

41.6

$

36.2

$

(23.0)

$

106.5

$

40.6

$

38.8

$

37.5

$

(15.5)

$

101.4

Net sales

$

348.6

$

261.6

$

277.8

$

(13.9)

$

874.1

$

183.7

$

214.2

$

285.5

$

(0.6)

$

682.8

Adjusted EBITDA
margin

14.8

%

15.9

%

13.0

%

12.2

%

22.1

%

18.1

%

13.1

%

14.9

%

____

(a)

See the Adjusted EBITDA reconciliations on the previous page for information on restructuring expenses and other adjustments.

Modine Manufacturing Company

Net debt (unaudited)

(In millions)

June 30, 2026

March 31, 2026

Debt due within one year

$

52.0

$

51.4

Long-term debt

476.2

384.9

Total debt

528.2

436.3

Less: cash and cash equivalents

95.3

73.5

Net debt

$

432.9

$

362.8

Free cash flow (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Net cash provided by operating activities

$

41.4

$

27.7

Expenditures for property, plant and equipment

(46.4)

(27.5)

Free cash flow

$

(5.0)

$

0.2

Organic sales and organic sales growth (unaudited)

(In millions)

Three months ended June 30, 2026

Three months ended June 30, 2025

Effect of

Sales

Organic

External

Exchange Rate

Effect of

Organic

External

Effect of

Excluding

Sales

Sales

Changes

 Acquisitions

Sales

Sales

Dispositions

Dispositions

Growth

Net sales:

Data Centers

$

348.4

$

—

$

—

$

348.4

$

183.6

$

—

$

183.6

90

%

Commercial HVAC

247.9

(2.0)

(19.7)

226.2

213.7

—

213.7

6

%

Performance Technologies

277.8

(4.1)

—

273.7

285.5

—

285.5

(4)

%

Net Sales

$

874.1

$

(6.1)

$

(19.7)

$

848.3

$

682.8

$

—

$

682.8

24

%

Kathleen Powers
(262) 636-1687
[email protected]

SOURCE Modine

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Modine (MOD - Free Report) Modine Manufacturing Company designs, engineers, and manufactures mission-critical thermal management products that heat, cool, and ventilate across commercial, industrial, and vehicular end markets. The company provides customer-centric systems, services, and components spanning HVAC (heating, ventilating, air conditioning) and refrigeration applications, along with engineered heat transfer systems and components for on- and off-highway OEMs.

MOD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MOD has a Growth Style Score of A, forecasting year-over-year earnings growth of 53.8% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.12 to $7.72 per share. MOD also boasts an average earnings surprise of +14.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MOD should be on investors' short list.

2.85K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.