Track market-moving stories before they get noisy

, /PRNewswire/ -- Flagstar Bank, N.A. (NYSE: FLG) (the "Bank") announced today that, based on preliminary voting results from the 2026 Annual Shareholders' Meeting held earlier today, all four proposals were approved by shareholders.

Based on these preliminary results, the Bank's shareholders approved the following:

The election of eight directors to one-year terms of office; The ratification of the appointment of KPMG, LLP as the Bank's independent registered public accounting firm for the fiscal year ending December 31, 2026; By a non-binding advisory vote, the approval of the compensation of the Bank's Named Executive Officers; and Approval of an Amendment to the Flagstar Bank, N.A., 2020 Omnibus Incentive Plan. Commenting on today's results, Executive Chairman and Chief Executive Officer, Joseph M. Otting stated, "We are grateful for the strong support received from our shareholders at today's Annual Meeting as nearly 90% of total shares outstanding were voted this year. The preliminary results affirm the progress the Bank has made in improving our financial performance, our risk management and corporate governance frameworks, and building a foundation for long-term growth. We appreciate the confidence our shareholders have placed in our Board of Directors and executive leadership team and remain committed to creating value and providing exceptional service to our customers and communities."

The Bank expects to file a Form 8-K with final voting results within the next four business days.

Flagstar Bank, N.A.

Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At March 31, 2026, the Bank had $87.1 billion of assets, $60.7 billion of loans, deposits of $66.8 billion, and total stockholders' equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast.

Cautionary Statements Regarding Forward-Looking Language

This press release may include forward‐looking statements by us and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to achieve profitability goals within projected timeframes and to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (g) our ability to achieve our financial and other strategic goals, including those related to our recent holding company reorganization, which was completed in October 2025 (the "Reorganization"), our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to comply with the heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; (h) the impact of the $1.05 billion capital raise we completed in March 2024; (i) the conversion or exchange of shares of our preferred stock; (j) the payment of dividends on shares of our capital stock, including adjustments to the amount of dividends payable on shares of our preferred stock; (k) the availability of equity and dilution of existing equity holders associated with future equity awards and stock issuances; (l) the effects of the reverse stock split we effected in July 2024; and (m) the impact of the 2024 sale of our mortgage servicing operations, third party mortgage loan origination business, and mortgage warehouse business.

Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "should," "confident," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results.

Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; our ability to achieve the anticipated benefits of the Reorganization; changes in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; the impact of changing political conditions or federal government shutdowns; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; our ability to comply with heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; the restructuring of our mortgage business; our ability to recognize anticipated cost savings and enhanced efficiencies with respect to our balance sheet and expense reduction strategies; the impact of failures or disruptions in or breaches of our operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, civil unrest, international military conflict, terrorism or other geopolitical events; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our merger with Flagstar Bancorp, which was completed in December 2022, and our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023: the possibility that the anticipated benefits of the transactions will not be realized when expected or at all; the possibility of increased legal and compliance costs, including with respect to any litigation or regulatory actions related to the business practices of acquired companies or the combined business; diversion of management's attention from ongoing business operations and opportunities; the possibility that we may be unable to achieve expected synergies and operating efficiencies in or as a result of the transactions within the expected timeframes or at all; and revenues following the transactions may be lower than expected.

More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2025, and in other reports we file with the Office of the Comptroller of the Currency (the "OCC") and voluntarily file with the Securities and Exchange Commission (the "SEC"), and which are also available on our Investor Relations website. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our securities disclosure filings. All such files are accessible on our website at ir.flagstar.com, on the OCC's website at www.occ.gov, and on the SEC's website at www.sec.gov.

Investor Contact: 
Salvatore J. DiMartino
(516) 683-4286

SOURCE Flagstar Bank, N.A.

After years of anticipation, privately held SpaceX finally has plans to go public. The Elon Musk-backed space exploration company filed with the Securities and Exchange Commission last month, and investors expect it to launch its initial public offering (IPO) in early June. Although SpaceX is reportedly allocating a large portion of the offering to retail investors, the opportunity for everyday investors to add exposure already exists.

Here are three publicly traded companies that already own -- or are set to own -- SpaceX stock: Alphabet (GOOG 2.23%) (GOOGL 1.95%), Bank of America (BAC +0.22%), and EchoStar(SATS 1.31%).

Image source: Getty Images.

Alphabet benefits from SpaceX in more ways than one Google and YouTube parent Alphabet first invested in SpaceX in 2015, investing $900 million in exchange for a 7% stake. It's since been reported that Alphabet owned 6% of SpaceX at the end of last year.

That's not all. The tech giant's close ties with the company could benefit it in more ways than one. Alongside having direct equity in SpaceX, Alphabet's Google Cloud unit has formed an infrastructure partnership with SpaceX's Starlink satellite communications unit.

Bank of America bought in years ago In 2018, BofA participated in a SpaceX equity funding round, investing $250 million. At the time, SpaceX had a valuation of around $30 billion. That would have given it less than 1% of SpaceX at the time.

EchoStar is set to get SpaceX shares EchoStar's best-known asset is its satellite television business, Dish Network. However, it and SpaceX have a deal that, if given regulatory approval, will sell spectrum to SpaceX and include shares of SpaceX going to EchoStar. EchoStar could end up with a 2.8% stake. If the deal is approved and SpaceX has a $2 trillion valuation, EchoStar's position would be worth around $56 billion.

EchoStar shares have rallied over fivefold in the past year. Investors are already aware of its space stock status. However, given its current market cap of $34 billion, compared to the potential value of its potential SpaceX stake, this satellite stock could have more room to run after the IPO.

Bank of America is an advertising partner of Motley Fool Money. Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

A satellite model is placed on EchoStar Satellite Services logo in this picture illustration taken April 4, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

May 11 (Reuters) - Telecommunications services firm EchoStar (SATS.O), opens new tab posted a larger-than-expected decline in pay-TV subscribers ​for the first quarter, as cord-cutting ‌pressures persist.

The results highlight ongoing consumer shifts away from traditional bundled television services ​toward cheaper, on-demand streaming platforms.

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Pay-TV ​subscribers decreased by about 366,000 in ⁠the first quarter, compared with an ​expected decline of 336,433 subscribers, according ​to Visible Alpha estimates.

Revenue in the pay-TV segment, EchoStar's largest, came in at $2.29 billion, beating ​analysts' average estimate of $2.28 billion, according ​to data compiled by LSEG.

In March, EchoStar ‌entered ⁠into a debt restructuring deal with a group of Dish DBS' bondholders, part of the company's long effort to ​deal ​with heavy ⁠debt.

The company reported revenue of $3.67 billion, a touch above ​estimates of $3.66 billion. First-quarter ​loss ⁠narrowed to $146.9 million, from $202.7 million in the same period last year.

The results ⁠come ​after EchoStar was added to ​the S&P 500 in March.

Reporting by Anhata Rooprai ​in Bengaluru; Editing by Tasim Zahid

Our Standards: The Thomson Reuters Trust Principles., opens new tab

© Vladi333 / Shutterstock.com

If you have ever tried to buy “space exposure” through an ETF, you have probably noticed the same trick. Most space funds quietly fill the bucket with Boeing (NYSE:BA | BA Price Prediction), Lockheed Martin (NYSE:LMT), and Honeywell (NASDAQ:HON), then call it a day. You end up with aerospace primes when what you wanted was the companies actually launching rockets and beaming broadband from low Earth orbit. Procure Space ETF (NYSEARCA:UFO) is one of the few funds that skips the switcheroo.

The timing matters. SpaceX filed confidentially with the SEC on April 1, 2026 and is reportedly chasing a $1.75 trillion valuation. Polymarket traders are pricing roughly a 72% probability of a listing by the end of June and a 94% probability by year-end. When the largest private company in the sector becomes a public security, every comparable name on a fund manager’s screen reprices alongside it.

What UFO Actually Holds UFO tracks the S-Network Space Index and screens for companies that derive meaningful revenue from space-related activities. The top three positions are Planet Labs (NYSE:PL), EchoStar (NASDAQ:SATS), and Sirius XM (NASDAQ:SIRI) (Sirius maintains a fleet of satellites). The top 10 names make up about half of net assets, so this is a concentrated bet on a real industry, not a closet aerospace index.

By sector, the fund is 46% Media & Communications and 43% Industrials, which is just the prospectus way of saying satellite operators and rocket builders. About 71% sits in U.S. names. Japan, Canada, and Luxembourg round out a portfolio that reflects where the world’s space companies are actually domiciled.

The Return Engine UFO does not collect option premium or harvest yield. It owns operating businesses whose fortunes rise and fall with launch cadence, satellite broadband subscriber growth, and government contracts. Rocket Lab (NASDAQ:RKLB) has run about 249% over the past year, and AST SpaceMobile (NASDAQ:ASTS) is up roughly 159% over the same stretch. That is the math driving the fund.

Does the Strategy Actually Work? UFO is up about 127% over the trailing year and roughly 33% year to date, the kind of return profile that justifies a thematic fund’s existence. The five-year picture is messier. The ETF returned about 92% over five years, well behind the S&P 500 over the same window. Space spent most of 2021 through 2024 as a punchline before the launch economy and direct-to-cell satellite business started generating real revenue.

That is the honest read. UFO works when the space economy is in expansion mode. It struggles as a steady compounder and has historically failed to protect capital during cyclical drawdowns. The recent run suggests the underlying businesses have crossed from story stocks into operating companies, but you are still buying volatility wrapped in a ticker.

Where the Strategy Hurts Concentration and small fund size. With about $750 million in net assets and the top 10 holdings near half the portfolio, you will feel it if space startups slow down. Fees that compound against you. The 0.94% expense ratio is reasonable for a thematic product but punishing next to an S&P 500 fund at a few basis points. You are paying for access, not efficiency. SpaceX is the elephant outside the room. The biggest space company on Earth is still private. Until that changes, UFO owns the supporting cast, and whenever SpaceX prices, the index methodology will determine the eventual weight rather than investor enthusiasm. UFO makes sense as a 2-5% satellite position for investors who want genuine exposure to the launch and orbital broadband economy ahead of a potential SpaceX listing, while anyone treating it as a diversified core holding is buying a sector bet dressed up as a fund.

EchoStar shares are powering higher. Why is SATS stock surging? The approval removes the final regulatory barrier and confirms that EchoStar can now complete both sales, which together represent more than $40 billion in deal value according to the FCC.

FCC Approval Unlocks Two Large Spectrum DealsThe FCC authorized EchoStar to sell roughly 65 megahertz of nationwide spectrum to SpaceX for use in Starlink's direct to device service. This gives SpaceX its first nationwide stretch of exclusive spectrum for smartphone connectivity from orbit, something that required formal approval before the deal could close.

What The Approval Means For EchoStarThe FCC attached several conditions to the transactions, including strict buildout requirements for AT&T, new flexibility for SpaceX to use the spectrum across satellite and ground networks, and a requirement that EchoStar establish a multibillion‑dollar escrow fund for potential claims.

With these conditions in place, the agency concluded that the transfers promote more efficient spectrum use and strengthen competition across wireless and satellite markets.

EchoStar And The Trend That Refuses To Cool OffTechnically, the stock is extended, but that’s often what leadership looks like before it turns into exhaustion. EchoStar is trading 6.8% above its 20-day SMA of $125.03, 11.8% above its 50-day SMA ($119.45) and 46.8% above its 200-day SMA ($91.00). That stacked moving-average structure typically signals buyers are still in control on pullbacks, even if the chart is starting to feel crowded.

Here are some key levels:

Key Resistance: $137.50 — sitting right near the 52-week high area, where upside attempts can stall Key Support: $117.00 — a prior buyer-defense zone that also sits near the broader moving-average "catch-up" area SATS Shares Are Trending HigherSATS Price Action: EchoStar shares were up 3.05% at $133.32 at the time of publication on Wednesday. The stock is trading near its 52-week high of $137.44, according to Benzinga Pro.

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On May 20, 2026, EchoStar Corp SATS shares rose 3.8% to a current price of $141.80, reflecting a strong upward trend over the past year with a staggering increase of 539.9%. The stock has experienced significant volatility, with a 52-week high of $147.25 and a low of $14.90.

GF Value™ verdict: The current price is $141.80, significantly above the GF Value™ of $19.84, indicating it is 614.7% overvalued.GF Score™: With a score of 49/100, the stock is deemed average, suggesting it may not be a strong long-term investment.Most notable signal: Insider activity shows that insiders sold $15.5 million worth of stock in the last three months, indicating a lack of confidence from those closest to the company. Is SATS Overvalued or Undervalued? The current price of EchoStar Corp SATS at $141.80 is dramatically higher than the GF Value™ of $19.84, suggesting a substantial overvaluation of 614.7%. This stark difference highlights a significant margin of safety for potential investors, where the actual market price far exceeds the calculated intrinsic value. The GF Valuation label categorizes SATS as "Significantly Overvalued," posing risks for those looking to enter the stock at this elevated price level.

When a stock is significantly overvalued, it indicates that the market price may be unsustainable in the long term, potentially leading to a price correction. Investors should consider the implications of this overvaluation, particularly in a market where the stock has recently surged in price. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does SATS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 430.7x 0.7x The current forward P/E ratio of EchoStar Corp SATS stands at a staggering 430.7x, which is significantly higher than its 5-year median P/E of 0.7x. This analysis reaffirms the GF Value™ verdict of overvaluation, as the stock is trading well above its historical valuation metrics. Such a high P/E ratio may indicate excessive market expectations that could be difficult to sustain in the future.

What Does SATS's GF Score™ Tell Us? Metric Rating GF Score™ 49/100 Financial Strength 3/10 Profitability 5/10 Growth 3/10 Valuation 1/10 Momentum 3/10 The GF Score™ of 49/100 indicates that EchoStar Corp SATS is performing at an average level across the evaluated criteria. The strongest area is profitability, rated at 5/10, suggesting some degree of operational efficiency. However, the weakest area is valuation, where SATS has a concerning rating of 1/10, consistent with its significant overvaluation as indicated by the GF Value™ assessment. The low scores in financial strength (3/10) and growth (3/10) further underscore potential risks for investors.

What Are Insiders Doing with SATS Stock? In the past three months, insiders have sold approximately $15.5 million worth of EchoStar Corp SATS stock, with no reported buying activity. This trend of insider selling can be a red flag, suggesting that those with the most intimate knowledge of the company's operations may lack confidence in its future performance. Such actions often indicate that insiders may anticipate challenges ahead or believe the stock is currently overvalued.

What This Means for Investors Based on the current valuations and the GF Value™ assessment, EchoStar Corp SATS is deemed significantly overvalued. The substantial gap between its market price and intrinsic value, compounded by poor financial strength and valuation scores, suggests caution for potential investors.

For the complete analysis, visit the EchoStar Corp SATS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SATS's GF Score™?

SATS's GF Score™ is 49/100, indicating an average performance across key investment metrics.

Is SATS overvalued or undervalued?

SATS is significantly overvalued, with a market price of $141.80 compared to a GF Value™ of $19.84.

What is SATS's P/E ratio?

The current P/E ratio for SATS is 430.7x, which is significantly above its 5-year median P/E of 0.7x, indicating a substantial overvaluation.

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].

Issued on behalf of Starfighters Space, Inc.

, /PRNewswire/ -- Equity Insider News Commentary — The looming SpaceX IPO has done something that almost no other capital markets event in a decade has managed: it has made the space sector mainstream investible. A Yahoo Finance segment that ran yesterday with ETF.com president Dave Nadig laid out the case directly, walking through the ETFs and broader public space exposure that stand to benefit from what is shaping up to be the largest IPO in history. Multiple ETF issuers are already gearing up. [1]

SpaceX confidentially filed its S-1 with the SEC on April 1, 2026, and its public registration is expected to land on EDGAR between May 18 and May 22. The targeted June Nasdaq listing aims to raise as much as US$75 billion at a US$1.75 trillion valuation. [2] That alone reshapes the comparable set for every publicly traded space name in the market today.

The sector backdrop is more than just one IPO. NASA announced a new Moon Base initiative in March. The Trump administration's Golden Dome missile defense program is in full procurement. The Department of War has expanded its hypersonic test budget. Commercial space stations, lunar landers, and microgravity research platforms — work that until recently lived inside a small handful of government programs — are now being executed by publicly traded companies posting record backlogs. Against that wave, one NYSE American–listed operator at Cape Canaveral made a move yesterday that drops it directly into a federal procurement opening.

A NASA RFI, a Falcon 50, and a Capability the U.S. Has Gone Without

Starfighters Space, Inc. (NYSE American: FJET) — the operator of what its own filings describe as the world's fastest fleet of commercial supersonic aircraft — announced a signed Memorandum of Understanding with Mu-G Technologies, LLC and a joint response to a NASA Armstrong Flight Research Center Request for Information for Parabolic Flight Services. The RFI targets companies that can rebuild the country's commercial microgravity capability — a capability the U.S. has gone without since the last domestic operator exited the market. [3]

Under the MOU, Starfighters will host Mu-G's Dassault Falcon 50 at the Midland International Air & Space Port in Texas, where the aircraft will be modified to conduct parabolic test flights and worked through FAA certification. Starfighters provides ground support, chase plane and data collection, expert pilot integration, and safety and regulatory alignment. [3]

The combined offering covers four flight environments at one site: microgravity from the Falcon 50, reduced gravity and hyper-gravity from the same parabolic profiles, and the supersonic regime from Starfighters' F-104s. The NASA RFI specifically asks for "novel or non-traditional flight platforms." [3]

Microgravity research is increasingly where real commercial work happens. Pharma and biotech companies use the absence of gravity-driven sedimentation to grow purer protein crystals and study drug mechanisms. Materials scientists use reduced gravity to study how alloys solidify without convection currents. Defense and aerospace engineers use parabolic profiles to test sensors, fluid systems, and components before committing to a launch. U.S. researchers who need that environment today have to look overseas or wait — exactly the gap NASA is asking industry to fill.

Starfighters CEO Tim Franta and Mu-G founder Robert S. Ward have known each other for nearly thirty years through the Space Coast aerospace community. Franta took over as CEO in February 2026. [4] Starfighters already flies revenue missions for Lockheed Martin, Space Florida, and the U.S. Air Force Research Laboratory. [5] On May 7, it added two senior Blue Origin engineers to lead STARLAUNCH operations. [6]

Four Other Names Riding the Same Wave

Karman Holdings Inc. (NYSE: KRMN) — A leader in critical next-generation system solutions for space, hypersonics, and missile defense. On May 12, Karman reported record Q1 2026 revenue of US$151.2 million, up 51.0% year-over-year, with record quarterly adjusted EBITDA of US$44.8 million (29.6% margin) and a record backlog of US$1.0 billion, up 61% year-over-year. The Space and Launch segment led growth at US$43.9 million, with the company introducing a new Maritime Defense Systems end market in the quarter. Management raised full-year 2026 guidance to US$720–US$735 million in revenue and US$208.5–US$219.5 million in adjusted EBITDA. [7][8]

MDA Space Ltd. (NYSE: MDA) — A trusted mission partner to the global space industry, dual-listed on the NYSE and TSX. On May 7, MDA Space reported Q1 2026 revenue of CAD$464 million, up 32% year-over-year, with a backlog of CAD$3.7 billion providing visibility into 2026 and beyond. The company ended the quarter with a CAD$299 million net cash position and CAD$1.2 billion in total liquidity. In April, MDA launched MDA MIDNIGHT™, a space-control platform aimed at protecting critical orbital infrastructure, while in March it announced a Canadian Defence Investment Agency contract for three Ground-Based Optical observatories. CEO Mike Greenley cited a CAD$40 billion pipeline across commercial and government customers. [9]

EchoStar Corporation (Nasdaq: SATS) — Holds an equity stake in SpaceX acquired through prior spectrum transactions, now widely flagged as one of the most direct public proxies for the SpaceX IPO repricing thesis. On May 11, EchoStar reported Q1 2026 revenue of US$3.67 billion and confirmed that the FCC's Wireless Telecommunications Bureau and Space Bureau approved its approximately US$40 billion sale of wireless spectrum to AT&T and SpaceX, with EchoStar to continue operating Boost Mobile via an MVNO partnership. [10][11] On May 13, New Street Research initiated coverage with a Buy rating and a US$161 price target, calling EchoStar "the SpaceX play, for now." [12]

Viasat, Inc. (Nasdaq: VSAT) — A global satellite communications provider with annual revenue of approximately US$4.56 billion. Viasat is one of five companies awarded initial contracts under the U.S. Space Force's Protected Tactical SATCOM-Global (PTS-G) program, which carries a ceiling of US$4 billion in IDIQ value across awardees for resilient, anti-jam tactical communications. [13] On May 7, Viasat announced a cooperation agreement with activist investor Carronade Capital Management, adding two new independent directors to the Board's Strategic Review Committee. On May 13, New Street Research initiated coverage with a Buy rating and a US$100 price target, citing Viasat's defense communications position as a SpaceX-IPO-adjacent beneficiary. [12]

The Bottom Line

The Yahoo Finance segment captured what the market has already started pricing: when the anchor of the entire ecosystem is going public at a US$1.75 trillion valuation, every publicly traded company that does real work in the same lane gets re-rated. Starfighters Space, Inc. (NYSE American: FJET) is one of the few publicly traded operators that owns a flying fleet of supersonic aircraft today, has revenue from blue-chip aerospace customers, and is now in the running for a NASA-defined commercial microgravity capability that does not currently exist domestically. The Mu-G MOU is the next concrete step. As always, investors should do their own research and consult a qualified financial advisor before making any decision.

For more information on Starfighters Space, Inc., visit: https://equity-insider.com/fjet-landing

Contact:
Equity Insider
[email protected]
604-265-2873

Sources:

[1] https://finance.yahoo.com/video/spacex-ipo-set-bolster-space-180000761.html
[2] https://www.ibtimes.com/spacex-files-largest-ipo-ever-while-absorbing-494-billion-loss-its-xai-merger-3802915
[3] https://ir.starfightersspace.com/news-events/press-releases
[4] https://www.stocktitan.net/sec-filings/FJET/8-k-starfighters-space-inc-reports-material-event-3234f73ec472.html
[5] https://finance.yahoo.com/news/starfighters-space-demonstrates-commercial-supersonic-130000515.html
[6] https://finance.yahoo.com/sectors/technology/articles/starfighters-space-adds-blue-origin-130000983.html
[7] https://www.sec.gov/Archives/edgar/data/0002040127/000119312526219495/krmn-ex99_1.htm
[8] https://www.stocktitan.net/sec-filings/KRMN/8-k-karman-holdings-inc-reports-material-event-0e4e3b7a2b1a.html
[9] https://www.sec.gov/Archives/edgar/data/0001857047/000110465926056789/tm2613608d3_ex99-1.htm
[10] https://stockanalysis.com/stocks/sats/
[11] https://blockonomi.com/echostar-sats-stock-surges-on-spacex-ipo-speculation-and-40b-fcc-spectrum-deal/
[12] https://stocktwits.com/news-articles/markets/equity/spacex-ripple-effect-rklb-sats-vsat-top-space-stock-bets/cZX1hH7Re1b
[13] https://www.investing.com/news/company-news/viasat-secures-contract-for-us-space-force-satellite-program-93CH-4277193

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FORWARD-LOOKING STATEMENTS:

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that demand for U.S. aerodynamic and hypersonic test infrastructure will continue to accelerate; that Starfighters Space, Inc.'s F-104 platform will provide testing capabilities at the cadence and conditions described; that the Company's expansion to Midland, Texas will proceed as planned; that the Company will retain and grow its existing customer base; that comparable companies will perform as expected. The forward-looking information contained herein is provided for the purpose of assisting the reader to understand the Company's business, however such information may not be appropriate for other purposes. Risks that could change or prevent these statements from coming to fruition include changing governmental laws and policies; the Company's ability to obtain and retain necessary licensing; political and competitive risks; failure of forecasts and assumptions to come to fruition; and other unforeseen circumstances. The publisher of this article does not take responsibility for the accuracy of any statements made by the issuing company or its representatives. Readers are cautioned not to place undue reliance on these forward-looking statements, and the publisher undertakes no obligation to update or revise any forward-looking statements except as required by applicable law.

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SpaceX will be one of the most sought-after initial public offerings (IPOs) in Wall Street's history. However, with a valuation expected at close to $2 trillion, retail investors may struggle to buy in early enough to capture meaningful upside. That makes EchoStar (SATS 1.31%) an unusual way to get exposure to SpaceX before the rocket and satellite company starts selling stock.

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EchoStar agreed to sell 65 megahertz of wireless spectrum to SpaceX, providing support for SpaceX's Starlink to offer direct-to-device service (connecting regular phones directly to satellites). The deal was first valued at about $17 billion, but amended terms could lift the total to about $20 billion, including up to $11 billion in SpaceX stock valued at $212 per share.

In May 2026, the FCC approved EchoStar's broader $40 billion spectrum sale to SpaceX and AT&T. These regulatory approvals have brought EchoStar closer to receiving cash and SpaceX stock.

EchoStar's SpaceX stake is changing the story EchoStar is not a clean alternative to SpaceX. The company's legacy satellite TV business remains under pressure, with pay-TV subscribers declining by about 366,000 in the first quarter of fiscal 2026 (ending March 31, 2026). However, EchoStar has also reduced its net loss and improved its operating income before depreciation and amortization year over year. These improvements are giving investors a reason to look beyond the shrinking pay-TV business toward its spectrum proceeds and the SpaceX equity stake.

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The upside now depends not only on its core business, but also on the value of its SpaceX stock, the cash it receives from spectrum sales, how much debt it can repay, and how much money is left after taxes and costs associated with shutting down parts of its own wireless network. Barron's estimates the SpaceX stake could be worth about $31 billion if SpaceX lists at a $1.75 trillion valuation.

EchoStar is affected by weak legacy businesses and execution risk. Yet it is still a high-risk, high-reward way to gain exposure to SpaceX before the IPO.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

A SPECIAL WELCOME GIFT FROM ZACKS.COM Zacks' 7 Strongest Buys for June, 2026 See our "best of the best" short-term stocks. Hand-picked from 220 new Strong Buys, they could be the most profitable stocks you own over the next 90 days. Recent picks have climbed as much as +97.3% within 30 days. Our new recommendations may soar just as high.

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Q2 Earnings Season Preview: What to Expect Total Q2 earnings for the S&P 500 index are currently expected to be up +21.8% from the same period last year on +10.9% higher revenues, with 11 of the 16 Zacks sectors expected to enjoy positive earnings growth.

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Insiders Are Jumping Into These Stocks They know more about what their companies are up to than Zacks . . . until now.

They know more about what their companies are up to than Zacks . . . until now.

When Will SpaceX Show Up in Your Portfolio? Major index providers are rolling out new "fast entry" rules for blockbuster IPOs. The Nasdaq-100 has already reduced its waiting period for inclusion from three months to just 15 trading days.

Major index providers are rolling out new "fast entry" rules for blockbuster IPOs. The Nasdaq-100 has already reduced its waiting period for inclusion from three months to just 15 trading days.

Don't Be Fooled: Today's CPI Is a Buy Signal in Disguise When we actually look at what the Fed cares about, the picture inverts completely. Zacks Strategist Bryan Hayes has the details for us.

When we actually look at what the Fed cares about, the picture inverts completely. Zacks Strategist Bryan Hayes has the details for us.

Top Research Reports for Merck, Southern Company & Lumentum Merck, Southern Co. and Lumentum lead Zacks' featured research reports as growth drivers, expansion plans and key risks shape outlooks.

Merck, Southern Co. and Lumentum lead Zacks' featured research reports as growth drivers, expansion plans and key risks shape outlooks.

2 Highly Ranked Stocks to Consider After May's Hot CPI Report: DOW, GLP With inflation pressures resurfacing and commodity markets reacting to geopolitical developments, Dow Inc. and Global Partners may be well positioned to navigate the current environment.

With inflation pressures resurfacing and commodity markets reacting to geopolitical developments, Dow Inc. and Global Partners may be well positioned to navigate the current environment.

Inside the GLP-1 Boom: ETF Picks for the Obesity Drug Market Investors increasingly view GLP-1 drugs as a broader metabolic-health platform extending beyond obesity and diabetes into areas such as sleep apnea, kidney disease, cardiovascular risk, liver disease and addiction treatment.

Investors increasingly view GLP-1 drugs as a broader metabolic-health platform extending beyond obesity and diabetes into areas such as sleep apnea, kidney disease, cardiovascular risk, liver disease and addiction treatment.

Best Cheap Stocks to Buy Under $10 for June 2026 Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Best Defense Stocks for June 2026 Global military spending recently climbed to record levels: Here are our picks for the Best Defense Stocks to buy now.

Global military spending recently climbed to record levels: Here are our picks for the Best Defense Stocks to buy now.

Best Energy Stocks to Buy for June 2026 The energy sector remains one of the most closely watched corners of the market. Here are our top picks for energy stocks to buy now.

The energy sector remains one of the most closely watched corners of the market. Here are our top picks for energy stocks to buy now.

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Featured Zacks Rank Stocks Learn to Profit from the Zacks Rank

#1 Rank Bull of the Day Five Below (FIVE) Though the stock faced pressure following its latest earnings release, the results remained solid, with the company seeing strong comparable sales growth and raising its 2026 EPS and sales guidance.

#5 Rank Bear of the Day Builders FirstSource (BLDR) Quarterly results have largely skewed sentiment around BLDR, with the company falling short of the Zacks Consensus EPS estimate by double-digit percentages in back-to-back releases.

Zacks #1 Rank Top Movers for Jun 10, 2026 Zacks #1 Rank Top Movers Zacks #1 Rank Top Movers for 06/11/26 Value Growth Momentum VGM Income Company Symbol Price %Chg Alto Ingred... ALTO 5.66 +7.60% Cenovus Ene... CVE 28.37 +2.60% LyondellBas... LYB 65.15 +2.37% Crescent En... CRGY 11.71 +2.36% CrossAmeric... CAPL 22.46 +2.00% Zacks #1 Rank Top Movers7/16 The Zacks #1 Rank List is the best place to start your stock search each morning. It's made up of the top 5% of stocks with the most potential. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score.

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Full Zacks #1 Rank List8/16 You can see the full Zacks #1 Rank List or narrow it down to Zacks #1 Rank Stocks with a Value, Growth, Momentum or Income Style Score of A or B. Plus, you can see the Zacks #1 Rank Stocks with a VGM of A or B. You can also sort the list with criteria you choose, view Additions and Deletions by day, and Performance.

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Zacks #1 Rank Additions Company (Symbol) Report Caterpillar (CAT) ANALYST REPORT Hewlett Packard (HPE) ANALYST REPORT H&R Block (HRB) ANALYST REPORT Ciena (CIEN) ANALYST REPORT DaVita (DVA) ANALYST REPORT Investment Ideas Earnings Analysis More Analysis Reported Earnings Surprises View All Positive Negative Symbol Time Expected Reported %Surprise NAVN 16:06 -0.01 0.08 +900.00 SFIX 16:05 -0.06 -0.01 +83.33 ANIX 16:19 -0.10 -0.07 +30.00 ATEX 16:52 -0.56 -0.41 +26.79 OXM 16:10 1.27 1.39 +9.45 EPS Positive Surprises for Jun 10, 2026

Symbol Time Expected Reported %Surprise PRE 08:37 -0.49 -0.56 -14.29 EPS Negative Surprises for Jun 10, 2026

Upcoming Earnings ESP View More Symbol ESP Most Accurate Estimate Consensus Estimate ADBE 0.14% 5.84 5.83 KEP 2.77% 1.30 1.27 REPL 3.85% -0.70 -0.73 Featured Stock Picks

Best Energy Stocks to Buy for June 2026 The energy sector remains one of the most closely watched corners of the market. Here are our top picks for energy stocks to buy now.

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Explore how sector exposures and index strategies set these small-cap value ETFs apart for investors seeking different portfolio priorities.

SATS' Wireless and Broadband gains lifted OIBDA and narrowed losses, even as Pay-TV and broadband subscriber declines persist.

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Pre-Market Stock Futures: Futures are trading modestly higher as we hit the midweek mark, and some buyers’ exhaustion likely played a role, as all the major indices finished lower on Tuesday. This comes after both the Nasdaq and the S&P 500 hit all-time highs once again earlier this week. The combination of mixed earnings, some AI chatter on OpenAI results, and the ongoing conflict with Iran all weighed on shares yesterday. The Russell 2000, which has been the leading index year to date, closed down 1.21% at 2,753, while the Nasdaq finished the session down 0.90% at 24,663. The S&P 500 was last seen at 7,138, down 0.49%, and the venerable Dow Jones Industrial closed barely lower, down just 0.05% at 49,141.

Treasury Bonds: Yields were mostly higher across the Treasury curve once again, as sellers who started the week off to the downside in U.S. sovereign debt returned. The usual reasons for selling, such as geopolitical worries, bloated government budgets, the situation in Iran, and basic concerns over the fiscal outlook for the U.S. economy, were front and center Tuesday. The 30-year-long bond closed the day at 4.94%, while the benchmark 10-year note was last seen at 4.35%.

Oil and Gas: The energy complex traded higher on Tuesday after the United Arab Emirates shocked the energy world by announcing it was leaving OPEC immediately, with its departure from the cartel set for May 1st. That, plus some escalation in the fighting with Iran, was all that it took to send prices higher. Brent Crude finished the day at $110.80, up 2.3%, while West Texas Intermediate was last seen at $99.61, up 3.36%. Natural gas closed Tuesday at $2.55, up 0.16%. 

Gold: Precious metals have been under pressure for the past week, and the trend continued on Tuesday. The ongoing selling was driven by the familiar combination of geopolitical tensions, inflationary pressures, and a stronger U.S. dollar, which diminishes the appeal of non-yielding precious metals, prompting sellers to act. Gold closed the session at $4,595, down 1.84%, while Silver ended the day at $72.97, down 3.2%. 

Crypto: Cryptocurrency prices corrected on Tuesday amid cautious investor sentiment and broader risk-off market dynamics. Bitcoin dipped below $77,000 as it retreated from recent weekly highs, while Ethereum slipped below $2,300 and XRP faced heightened downside pressure. The pullback aligned with caution ahead of key events, such as the Federal Reserve meeting. Reports noted mixed or recent ETF flows for Bitcoin, though some pressure from outflows or rotation contributed to the day’s downside. At 8 AM EDT, Bitcoin was trading at $77,570, while Ethereum was trading at $2,333. 

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Wednesday, April 29, 2026.  

Upgrades: Franklin Resources (NYSE: BEN) | BEN Price Prediction was upgraded to Equal Weight from Underweight at Barclays, which lifted the target price for the asset management giant to $31 from $26. Spotify Technology (NYSE: SPOT) was upgraded to Buy from Neutral at Rosenblatt, which slashed the target price for the music streaming giant to $500 from $670. T-Mobile US (NASDAQ: TMUS) was raised to Outperform from Perform at Oppenheimer, with a $260 target price objective. Victoria’s Secret (NYSE: VSCO) was upgraded to Buy from Neutral at Bank of America, which bumped the target price for the shares to $68 from $58. Zeta Global Holdings (NYSE: ZETA) was upgraded to Overweight from Sector Weight at KeyBanc with a $22 target price. Downgrades: Boston Scientific (NYSE: BSX) was downgraded to Neutral from Outperform at Daiwa, which cut the target price for the medical devices giant to $60 from $83. Brown-Forman (NYSE: BF-B) was downgraded to Underweight from Neutral at JPMorgan, which trimmed the target price for the spirits leader to $23 from $27. MercadoLibre (NASDAQ: MELI) was downgraded to Neutral from Buy at UBS, which dropped the target price for the company in a big way, to $2,050 from $2,700. StoneCo (NASDAQ: STNE) was downgraded to Neutral from Buy at Goldman Sachs, which dropped the target price for the shares to $14 from $20. Sysco (NYSE: SYY) was cut to Hold from Buy at Deutsche Bank, which lowered the target price for the stock to $84 from $90. Initiations: Alibaba Group Holding (NYSE: BABA) was initiated with an Outperform rating at BNP Paribas, with a $209 target price. 
Charter Communications (NASDAQ: CHTR) was resumed with a Neutral rating at JPMorgan, with a $215 target price for the stock. Legence (NASDAQ: LGN) was started with a Buy rating at Loop Capital, which has a $96 target price for the shares. PicPay (NASDAQ: PICS) was started with a Buy rating at BTG Pactual with a $20 target price. WAVE Life Sciences (NASDAQ: WVE) was assumed with a Buy rating at Truist, which demolished the target price for the stock to $15 from $50.

Zeta Global Holdings Corp. (ZETA) Q1 2026 Earnings Call Transcript

Zeta Global's Q1 earnings highlight the success of its land-and-expand model after reporting its 4th consecutive quarter of core business growth acceleration driven by ARPU expansion and an NRR above 115%. The rollout of Athena could help Zeta maintain revenue growth acceleration over the coming quarters after driving a 7-time increase in agentic interactions in its first week of GA. Increased adoption of Athena could drive gross margin expansion over the long term as the majority of its queries are done on Zeta's platform thanks to its vast first-party datasets.

NEW YORK--(BUSINESS WIRE)---- $ZETA--Zeta Global Joins Forces with Snowflake to Spearhead Open Semantic Interchange to Establish a Universal Data Standard for AI-Powered Marketing.

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Zeta Global (ZETA) buy

Buy ZETA. The OSI entry is a credible AI-era data standard tailwind, and the fundamentals are already accelerating: 19 straight beat-and-raise quarters, Q1 revenue +50%, ARPU up to $1.7, and strong cash/EBITDA growth. The stock also has a technical setup: reclaiming the 50-day EMA and pushing toward the $19.40 neckline suggests momentum can extend toward ~$25 if the conference narrative stays strong.

Key Risk: Guidance or customer growth stalls—OSI doesn’t translate into measurable bookings/ARPU, and the stock gives back the breakout.

Snowflake ecosystem (SNOW) buy

Buy SNOW as a second-order beneficiary. OSI is Snowflake-led; Zeta joining increases OSI adoption credibility, which should pull more partners and workloads into Snowflake’s data/AI stack. If ZETA’s OSI integration drives customer wins, the market will generalize that OSI is working—supporting SNOW multiple expansion.

Key Risk: OSI adoption disappoints—partners don’t convert into meaningful Snowflake usage/revenue, and SNOW rerates lower despite headlines.

Zeta Global stock price jumped by over 4% on Friday in a high-volume environment after the company joined the Open Semantic Exchange (OSI), an initiative by Snowflake. ZETA jumped to $17.6, its highest point since May 7 as focus shifts to the upcoming JPM Global Technology, Media, and Communications Conference.

Data shows that Zeta Global was in high demand on Friday, as over 6.9 million shares exchanged hands. The three-month daily average volume was about 8 million.

ZETA, a company that provides AI marketing cloud solutions to some of the largest companies, announced that it joined OSI. OSI is a universal specification for all companies to standardize their fragmented data definitions with an open, vendor-neutral semantic model.

The entry will enable the company improve its services, especially now in the artificial intelligence (AI) era. It will help to align on a common foundation for how business metrics are defined and shared. 

Zeta Global stock also jumped after the company confirmed that it will participate in a major conference on Monday. Some of the top other companies set to attend are DigitalOcean, Lattice Semiconductor, IMAX, and Outfront Media. 

These events are happening after the company published strong financial results. It was its 19th consecutive quarter of a “beat and raise.” Its revenue jumped by 50% in the first quarter to $396 million, a sign that demand is continuing to grow. 

Zeta Global’s cash from operations jumped by 43% to $50 million, while the adjusted EBITDA rose by 42% to $66 million. 9 out of the ten verticals it focuses on grew in the last quarter.

Zeta continued to add customers during the quarter. It had six consecutive quarters of sequential super-scaled customeer growth, ending the quarter with 189. Its average revenue per user (ARPU) rose to $1.7.

The company now expects its growth will continue in the coming years. Its guidance is that its revenue will jump to $2.3 billion in 2028, from the estimated $1.78 billion this year. The adjusted EBITDA is expected to move from $397 million this year to $573 million in 2028, while its FCF is expected to jump to $371 million.

Analysts have a bullish outlook of the Zeta stock. The consensus target is $28.33, up by 64% from the current level. Some of the recent upgrades came from companies like B. Riley, Royal Bank of Canada, KeyCorp, and Goldman Sachs.

ZETA stock chart | Source: TradingView

The daily chart shows that the ZETA share price formed a double-bottom pattern at $14.60, its lowest level in February and March this year. Its neckline was at $19.40, its highest point on March 5. 

The stock jumped to a high of $20 after its earnings and then pulled back to $15.50. It then jumped last week after its OSI announcement, and is attempting to move above the 50-day Exponential Moving Average (EMA). 

ZETA is also attempting to rise above the 50% Fibonacci Retracement level. Therefore, the most likely scenario is where the stock will remain inside the support at $14.60 and the resistance at $19.40 in the near term. A move above the resistance will point to more gains, potentially to $25. 

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Bank of America reinstated coverage of Zeta Global (NYSE:ZETA) with a Buy rating and a $24 price target, ending an extended quiet stretch on the AI marketing platform. The reinstatement lands just weeks after a blowout Q1 2026 report and signals renewed Wall Street conviction in the AdTech recovery story.

For long-term investors, the call frames Zeta as a credible disruptor in the enterprise marketing cloud replacement cycle. Zeta Global stock has been volatile, but the price target raise puts a clear bullish marker on the board.

Ticker Company Firm Action Old Rating New Rating Old Target New Target ZETA Zeta Global Bank of America Reinstatement N/A Buy N/A $24 The Analyst’s Case Bank of America’s bullish thesis aligns with the AI-driven replacement cycle reshaping enterprise marketing. Zeta’s proprietary data assets, agentic AI capabilities, and personalization tailwinds support a moat narrative that is hard to replicate at scale.

The valuation argument is also part of the story. Zeta trades at an attractive multiple relative to its growth rate, and Bank of America’s $24 target sits below the broader Street consensus of $28.77, leaving room for upward revisions if execution holds.

Company Snapshot Zeta Global is an AI-powered, data-driven marketing cloud platform that helps enterprises acquire, grow, and retain customers across email, social, web, and video. Core products include the Zeta Marketing Platform and the newly launched Athena agentic AI layer.

Zeta carries a market cap of roughly $4.28 billion, with 10 Buy ratings, 2 Strong Buys, and 2 Holds on the Street. CEO David Steinberg has positioned the company as the disruptor in the AI-driven marketing replacement cycle.

Why the Move Matters Now Q1 2026 gave Bank of America plenty to underwrite. Zeta posted $396.3 million in revenue, up 50% year over year (YoY), extending a 19 consecutive quarter beat-and-raise streak.

Management raised full-year 2026 revenue guidance to a midpoint of $1.785 billion and guided to positive GAAP net income for full year 2026. Athena drove 60% of all AI utilization on Zeta’s platform in its first week of general availability, a striking adoption signal.

Steinberg framed the moment plainly, stating, “AI is no longer a feature. It is driving a replacement cycle where enterprises are demanding fewer systems, measurable results and applied intelligence that works today.” ZETA stock closed at $18.82 on May 18, with a 1-year gain of 38%.

What It Means for Your Portfolio The bull case rests on Zeta’s data moat, agentic AI traction, and a recovering AdTech tape. However, prudent investors should weigh the bear case: competitive intensity from Adobe (NASDAQ:ADBE | ADBE Price Prediction), Salesforce (NYSE:CRM), and HubSpot (NYSE:HUBS), super-scaled customer concentration, and ongoing GAAP losses with $53 million in Q1 stock-based compensation.

The Bank of America analyst upgrade signals confidence, yet ZETA stock remains a higher-beta name with a beta of 1.292. Prudent investors may want to consider modest position sizing while monitoring Athena monetization and Marigold integration progress.

For prudent investors, Zeta Global stock offers exposure to one of the clearest AI-native plays in marketing technology, but the path requires patience. Keep an eye on Q2 2026 results, where revenue guidance of $419 million to $422 million sets the next milestone.

Zeta Global expands its partnership with OpenAI to manage the latter's advertising operations, unlocking a potentially high-volume revenue stream and validating 2026–2028 revenue targets. The exclusive OpenAI deal positions ZETA to capture market share from larger competitors and strengthens customer retention through Athena-driven ARPU growth. Q1 FY26 saw revenue surge 50% YoY, ARPU up 21% for Super-Scaled customers and management raised full-year guidance, reiterating 2028 targets of $2.3B revenue and 25% EBITDA margin.

There's a category of artificial intelligence (AI) investment that nobody argues about at the dinner table. And yes, everyone seems to be arguing about AI these days. It's not chips or cloud computing. It's the AI sitting inside the marketing decisions of the world's largest brands. Marketing and AI don't seem to mix in our human psyche, except for large language models (LLMs) used to help write marketing promos.

Zeta Global (ZETA 5.27%) is not a household name. It doesn't have a charismatic CEO who goes on podcasts, and it doesn't make a product that consumers can download and touch. What it does have is a proprietary database of over 240 million U.S. consumer identities, trillions of behavioral signals, and an AI platform that enterprise marketing teams use to figure out who to reach, when to reach them, and what to say. ​

Image source: Getty Images.

Here's what Zeta does: Most people think of digital marketing as Alphabet's Google ads and Meta Platform's Facebook posts. The reality inside a Fortune 500 marketing department is far more complicated. You have customer data siloed across a dozen platforms, media budgets spread across a hundred channels, and a pressure to prove return on investment (ROI) on every dollar spent. Zeta built a platform that unifies all of it -- identity, intelligence, and activation -- in one place, powered by AI that gets better as more data flows through it. ​

In March 2026, Zeta launched Athena by Zeta for general availability. This was a super-intelligent marketing agent built for chief marketing officers (CMOs) and enterprise marketing teams. Athena converts company data into predictive answers, flags opportunities before a human analyst would catch them, and tells marketers where to act. It's not really a content management system (CMS) or customer dashboard. It's closer to an AI employee who never sleeps and has processed more consumer data than any human team could read in a lifetime. ​

This matters because the Athena launch is not tech stock vaporware. An independent Forrester study found that enterprises using the Zeta Marketing Platform achieved a six-times return on ad spend and a 295% return on technology investment, generating $21.4 million in net present value over three years. ​

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The partnerships the market is pricing in At CES 2026, Zeta announced a strategic collaboration with OpenAI to power Athena's conversational intelligence and agentic applications. OpenAI models now support Athena's core reasoning layer, meaning when a CMO asks Athena why a campaign underperformed, it's drawing on the same foundational model powering ChatGPT, trained on Zeta's own proprietary consumer data.

In May 2026, Zeta joined forces with Snowflake to co-lead the Open Semantic Interchange initiative -- an open-source effort to create a universal data standard for AI-powered marketing. Zeta's CEO David Steinberg put it plainly: "AI is only as effective as the data it can trust." Zeta processes trillions of signals. Standardizing how that data moves across the industry doesn't just help Zeta's customers -- it positions Zeta as a foundational layer of the entire marketing technology ecosystem. ​

In the same month, Zeta announced it would launch advertising services on OpenAI's platform for its clients, opening up a new distribution channel inside one of the fastest-growing consumer interfaces in the world. ​

A Zeta risk you should know Zeta's revenue growth, while real, is not the 50% or 80% figures that get AI companies onto everyone's must-buy list. And the marketing technology space is crowded -- Salesforce, Adobe, and HubSpot all compete for the same CMO attention. If Athena fails to convert interest into sticky, multiyear enterprise contracts, the moat thesis weakens fast.​

I think Zeta feels like the kind of stock the smart money accumulates quietly while everyone else is still debating whether the story is real. The OpenAI partnership, the deeper ties with Snowflake, and the Athena rollout create exactly the kind of disconnect institutional investors look for before the broader retail narrative catches up.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Alphabet, HubSpot, Meta Platforms, Salesforce, and Snowflake. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

Zeta Global Holdings (ZETA) hit a buy point of a deep cup base on Monday. The marketing platform operator has a history of beat-and-raise quarters, making it Monday's choice among IBD 50 Growth Stocks To Watch.

Zeta stock popped around 11% Monday, following Friday's 13.4% jump, and is in a buy zone. Some software and tech names surged Monday after Nvidia (NVDA) introduced a new chip to be used in personal computers.

↑ X NOW PLAYING How To Handle Bull Market Extensions And Rotations; Flex, Fortinet, Snowflake In Focus

Zeta operates a real-time fully integrated marketing and advertising platform. Its platform aids marketers in acquiring, growing, retaining and analyzing customers efficiently. Its artificial-intelligence-based Athena platform analyzes data and gives predictive answers.

The IBD 50 name provides marketing services for email, social, connected television, video, mobile and in-store targeting. It serves clients in the retail, travel and hospitality, finance, publishing and media industries.

In addition, its customer data platform individualizes marketing at scale. Zeta's messaging platform creates personalized emails and mobile experiences for customers.

On May 14, Zeta said it teamed up with Snowflake (SNOW) by joining its Open Semantic Interchange. The OSI strives to standardize fragmented data to provide consistent metrics across dashboards, notebooks and machine-learning models to enhance compatibility.

Zeta stock resides in the Computer Software-Enterprise group, which holds the No. 55 spot out of the 145 industry groups that Investor's Business Daily tracks. The group's Relative Strength Rating has jumped to 72 from 44 one week ago, as investors have cycled back into software names.

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Zeta Stock Breaks Out Zeta stock broke out of a first-stage cup base with a 24.90 buy point in volume about 200% above average. Shares are in the 5% buy zone that extends to 26.15, according to MarketSurge pattern recognition. The stock is on pace for four straight weeks of gains.

Shares have been volatile and can show big swings, as reflected in their average true range of 6.3%. Investor's Business Daily seeks stocks with a maximum ATR of 5%.

Its relative strength line is climbing sharply and its 21-day exponential moving average is trending higher, both positive signs for Zeta stock.

Zeta's IBD Accumulation/Distribution Rating of A+ indicates heavy institutional buying over the last 13 weeks. And its volume spiked on rising days, showing large purchases from big money managers.

Zeta Raises Sales Outlook On April 28, Zeta reported that its first-quarter revenue jumped 50% to $396 million, which topped estimates. Its adjusted earnings per share of 13 cents were up from 9 cents a year ago and ahead of the FactSet consensus estimate of 11 cents. Its net loss of 6 cents per share was narrower than Wall Street's call of 7 cents.

"Nineteen consecutive beat-and-raise quarters is not just consistency – it is evidence of sustained demand in a market consolidating around platforms that can deliver measurable outcomes at scale and meet the needs of customers in an AI-native world," Zeta Chief Financial Officer Chris Greiner said in the earnings release.

Zeta raised its second-quarter sales outlook to a range of $419 million to $422 million. It also boosted its full-year 2026 revenue forecast to $1.779 billion to $1.792 billion, up $30 million at the midpoint from its prior projection of $1.755 billion.

Analysts expects improvement to its bottom line, with its full-year EPS rising 31% to 95 cents followed by $1.18 in 2027.

Zeta stock has a 75 out of 99 possible IBD Composite Rating and a low 20 Earnings Per Share Rating. Both have been pulled down by its recent quarterly and 2022 and 2023 losses.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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Zeta Global (ZETA 5.27%) is building momentum with Athena, enterprise customer growth, and the Marigold acquisition, but the stock already reflects major optimism. The upside thesis depends on whether AI engagement can become real monetization, stronger margins, and deeper customer relationships.

*Stock prices used were the market prices of May 25, 2026. The video was published on June 2, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Shares of Modine Manufacturing surged on Tuesday after the thermal management company announced a long-term agreement to supply more than $4 billion worth of cooling products to a strategic data center customer.

The deal reinforced investor optimism around the expanding artificial intelligence infrastructure market.

The stock climbed more than 17% during trading and was on track for one of its strongest single-day performances in months.

Earlier in the session, shares rose as much as 21%, putting the stock near an all-time high.

Under the agreement, Modine will supply its Airedale cooling products between calendar years 2027 and 2029.

The company also received a $165 million upfront cash payment from the unnamed customer to support manufacturing capacity investments and related expenditures needed to fulfill the contract.

The deal represents a major milestone for Modine as it continues shifting its business toward data center cooling infrastructure tied to AI-driven computing demand.

“This landmark agreement is a testament to the successful execution of our long-term strategy to grow our Data Centers business and validates our position as a technology leader,” Chief Executive Neil Brinker said.

The size of the agreement significantly exceeds Modine’s current annual data center revenue levels and highlights how rapidly the company’s cooling business has expanded alongside growing AI infrastructure spending.

Modine generated approximately $700 million in data center sales during fiscal 2025.

The newly announced agreement implies annualized revenue of roughly $1.3 billion beginning in 2027.

The company’s data center segment recently posted 78% sales growth in its latest quarter, and management had previously projected the business could reach $2 billion in annual revenue by 2028 before announcing the latest deal.

Analysts said the agreement further strengthens Modine’s position within the increasingly competitive market for advanced cooling systems used in hyperscale AI data centers.

The customer involved in the agreement was not disclosed, though Modine described it as one of its strategic data center customers.

The contract also adds substantial long-term revenue visibility for the company as demand for AI-related infrastructure continues to accelerate globally. 

According to Fiscal.ai data in a Stocktwits report, Modine is expected to generate approximately $3.15 billion in total sales during fiscal 2026, meaning the $4 billion agreement alone exceeds the company’s projected annual revenue base.

Investor enthusiasm around the stock also reflects broader optimism surrounding companies tied to AI infrastructure expansion.

Data centers supporting large-scale AI workloads require increasingly sophisticated cooling systems to manage rising energy usage and thermal intensity generated by advanced processors and computing clusters.

Modine’s Airedale products are specifically designed to support those cooling requirements.

The company has also been undergoing a broader strategic transformation.

Modine plans to separate its lower-margin Performance Technologies segment by the fourth quarter of 2026, positioning itself as a more focused climate solutions provider centered on data centers, HVAC, and refrigeration technologies.

Analysts have recently raised price targets on the stock following improving operational performance and continued strength in the company’s earnings results.

Analyst fair value estimates for the company have been raised to $249 following recent target increases from firms including B. Riley, Oppenheimer, KeyBanc, DA Davidson, and UBS.

Strong fourth quarter resulted in fourth consecutive year of record financial results

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter and fiscal year ended March 31, 2026.

Fourth Quarter Highlights:

Record quarterly net sales of $954.4 million increased $307.2 million, or 47 percent, from the prior year Net earnings of $73.6 million increased $23.5 million, or 47 percent, from the prior year Earnings per share of $1.­­36 increased $0.44, or 48 percent, from the prior year Record quarterly adjusted EBITDA of $146.1 million increased $42.0 million, or 40 percent, from the prior year Record quarterly adjusted earnings per share of $1.71 increased $0.59, or 53 percent, from the prior year Full-Year Highlights:

Record net sales of $3.2 billion increased $597.6 million, or 23 percent, from the prior year Net earnings of $123.3 million decreased $62.2 million, or 34 percent, from the prior year and included a $116.1 million non-cash pension termination charge in the third quarter Earnings per share of $2.26 decreased $1.16, or 34 percent, from the prior year Record adjusted EBITDA of $471.0 million increased $78.9 million, or 20 percent, from the prior year Record adjusted earnings per share of $5.02 increased $0.97, or 24 percent, from the prior year Fiscal 2027 Outlook:

Net sales growth between 20 percent and 35 percent Adjusted EBITDA range of $650 million to $680 million, resulting in growth between 38 percent and 44 percent "The team delivered a strong fourth quarter and a fourth consecutive year of record revenue, adjusted EBITDA and adjusted earnings per share," said Modine President and Chief Executive Officer, Neil D. Brinker. "I am incredibly proud of this exceptional performance as we continue to evolve our portfolio to become a more focused, high-growth company. We took decisive action this year to advance our transformation including the completion of three acquisitions in our Climate Solutions segment, the launch of the largest capacity expansion in our company's history to meet growing demand for our data center products, and the announced pending spin-off of the Performance Technologies business. Our future is bright, evidenced by a landmark $4 billion long-term agreement for chiller sales with a major hyperscale customer, cementing Modine's position as a critical partner for data center cooling."

Fourth Quarter Financial Results

Net sales increased 47 percent to $954.4 million, compared with $647.2 million in the prior year. Sales growth was driven by higher sales in the Climate Solutions segment, driven primarily by strong demand from data center customers and sales from acquired businesses. This performance was achieved despite a significant loss of production days from severe weather in multiple locations and shortages of key components from supply chain partners.  

Gross profit increased 29 percent to $214.7 million and gross margin decreased by 320 basis points to 22.5 percent. The decline in gross margin was largely expected and resulted primarily from higher temporary costs related to the capacity expansion for data center products, increased tariffs, and higher material costs.

Selling, general and administrative ("SG&A") expenses increased 25 percent to $101.7 million. The increase was primarily due to higher expenses in the Climate Solutions segment, supporting the segment's growth and including incremental expenses from the recent acquisitions, and costs related to the pending spin-off of the Performance Technologies segment. These higher costs were partially offset by cost saving initiatives, including benefits from previous restructuring actions.

Operating income increased 39 percent to $103.9 million, compared to $74.5 million in the prior year. This increase was driven by higher earnings in the Climate Solutions segment. The Company recorded $5.2 million of restructuring expenses during the fourth quarter, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $12.5 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 provision for income taxes, and depreciation and amortization expense, was $146.1 million, an increase of $42.0 million, or 40 percent, compared to $104.1 million in the prior year. 

Earnings per share was $1.36, compared with earnings per share of $0.92 in the prior year, an increase of $0.44, or 48 percent. Adjusted earnings per share was $1.71, compared with adjusted earnings per share of $1.12 in the prior year, an increase of $0.59, or 53 percent.

Fourth Quarter Segment Review

Climate Solutions segment sales were $665.9 million, compared with $356.3 million one year ago, an increase of 87 percent. Data Centers sales increased 158 percent from the prior year, and HVAC Technologies sales increased 51 percent, including $38.2 million of incremental sales from acquired businesses. The segment reported gross margin of 24.6 percent, which was 510 basis points lower than the prior year. This decline was largely expected and resulted primarily from the planned and temporary costs related to the rapid expansion of manufacturing capacity for data center products, and, to a lesser extent, higher tariff and weather-related temporary labor and overtime costs. The segment reported operating income of $108.8 million, a 77 percent increase from the prior year, and adjusted EBITDA of $124.3 million, an increase of 63 percent from the prior year. Performance Technologies segment sales were $294.0 million, compared with $294.8 million one year ago, a decrease of $0.8 million. This decrease primarily resulted from lower sales to stationary power customers, mostly offset by higher sales to automotive, commercial vehicle and off-highway customers. The segment reported gross margin of 16.5 percent, which was 390 basis points lower than the prior year, primarily due to higher material costs and tariffs. The segment reported operating income of $27.7 million, a 7 percent decrease from the prior year, and adjusted EBITDA of $37.4 million, a 15 percent decrease from the prior year. Full-Year Financial Results

Fiscal 2026 net sales increased 23 percent to $3,181.1 million compared with $2,583.5 million in the prior year. The increase was driven by higher sales in the Climate Solutions segment, with particularly strong growth in sales of data center products, and $119.1 million in incremental sales from acquisitions. This was partially offset by lower sales in the Performance Technologies segment.

Gross margin of 23.0 percent was 190 basis points lower than the prior year, primarily due to higher temporary costs related to the capacity expansion for data center products and higher material costs and tariffs.

The Company reported net earnings of $123.3 million compared to $185.5 million in the prior year, a decrease of $62.2 million. The current year results include a $116.1 million non-cash pension termination charge in the third quarter. The Company recorded $20.6 million of restructuring expenses during the year, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $20.3 million of acquisition and disposition costs.  Adjusted EBITDA, which excludes restructuring expenses, the pension termination charge, acquisition and disposition costs, certain other charges, interest expense, the provision for income taxes, and depreciation and amortization expense, was $471.0 million, an increase of $78.9 million, or 20 percent, compared to $392.1 million in the prior year. 

Earnings per share in fiscal 2026 was $2.26 compared with $3.42 in fiscal 2025, and adjusted earnings per share in fiscal 2026 was $5.02, compared with $4.05 in fiscal 2025.

Balance Sheet & Liquidity

Net cash provided by operating activities for the fiscal year ended March 31, 2026 was $248.7 million, an increase of $35.4 million compared to the prior year. Free cash flow for the fiscal year ended March 31, 2026 was $105.4 million, a decrease of $23.9 million from the prior year. This decrease was due to an increase in working capital and higher capital expenditures, both associated with the rapid growth of our Data Centers business. These drivers, which decreased free cash flow, were partially offset by higher operating earnings and the favorable impact of customer deposits received during fiscal 2026.  Cash payments for restructuring activities, funding of the U.S. pension plan in connection with its termination, acquisition and disposition costs, and certain other costs totaled $49.6 million during the fiscal year ended March 31, 2026.

Total debt was $436.3 million as of March 31, 2026. Cash and cash equivalents totaled $73.5 million as of March 31, 2026. Net debt was $362.8 million as of March 31, 2026, an increase of $83.6 million from the end of fiscal 2025. This increase resulted from borrowings to fund working capital, acquisitions and capital expenditures. 

Outlook

"Our fiscal 2027 outlook implies a fifth consecutive year of record results," added Brinker. "We anticipate another strong year for our Data Centers business, supported by our strong customer relationships and significant order book. Our capacity expansion remains firmly on track and we will continue to invest in our fastest growing business to ensure we meet the future needs of our key customers. Altogether, we expect another terrific year for Modine and are confident in our ability to deliver value for our customers and shareholders."

Outlook includes the Performance Technologies business for all of fiscal 2027. This outlook will be updated for the remaining business once the timing of the spin-off of the Performance Technologies segment is finalized. 

Based on current exchange rates and market conditions, Modine provides its outlook for fiscal 2027:

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 Wednesday, May 27, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter and fiscal year 2026 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 slides and the audio will be available on or after May 27, 2026, on the investor section of Modine's website at http://www.modine.com. An audio only replay will be available through midnight on June 3, 2026, by dialing 877-660-6853 (international replay 201-612-7415) and entering the Conference ID# 13758931. A transcript of the call will be posted to the company's website on or after May 28, 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 business 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 business, 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 $15 to $18 million, a provision for income taxes of approximately $135 to $145 million, and depreciation and amortization expense of approximately $90 to $95 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.  In connection with the pending Reverse Morris Trust transaction with Gentherm, the Company expects to incur approximately $30 to $40 million of additional costs during fiscal 2027, primarily for transaction advisory, legal, accounting, tax and other professional services.  Estimates of other expenses and gains for 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 March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net sales

$

954.4

$

647.2

$

3,181.1

$

2,583.5

Cost of sales

739.7

481.2

2,450.0

1,939.7

Gross profit

214.7

166.0

731.1

643.8

Selling, general & administrative expenses

101.7

81.5

360.1

332.1

Restructuring expenses

5.2

10.0

20.6

28.2

Impairment charge

—

—

4.1

—

Loss on sale of assets

3.9

—

3.9

—

Operating income

103.9

74.5

342.4

283.5

Interest expense

(8.6)

(5.3)

(31.6)

(26.4)

Pension termination charge

—

—

(116.1)

—

Other income (expense) – net

0.3

(2.4)

(8.2)

(3.1)

Earnings before income taxes

95.6

66.8

186.5

254.0

Provision for income taxes

(22.0)

(16.7)

(63.2)

(68.5)

Net earnings

73.6

50.1

123.3

185.5

Net earnings attributable to noncontrolling interest

(0.3)

(0.5)

(1.8)

(1.5)

Net earnings attributable to Modine

$

73.3

$

49.6

$

121.5

$

184.0

Net earnings per share attributable to Modine shareholders –
diluted

$

1.36

$

0.92

$

2.26

$

3.42

Weighted-average shares outstanding – diluted

54.0

53.9

53.8

53.9

Condensed consolidated balance sheets (unaudited)

(In millions)

March 31, 2026

March 31, 2025

Assets

Cash and cash equivalents

$

73.5

$

71.6

Trade receivables

731.0

478.9

Inventories

506.1

340.9

Other current assets

105.5

69.8

Total current assets

1,416.1

961.2

Property, plant and equipment – net

520.9

390.5

Intangible assets – net

197.0

146.7

Goodwill

292.1

233.9

Deferred income taxes

85.3

67.0

Other noncurrent assets

163.2

118.3

Total assets

$

2,674.6

$

1,917.6

Liabilities and shareholders' equity

Debt due within one year

$

51.4

$

54.1

Accounts payable

464.8

290.8

Other current liabilities

212.7

196.1

Total current liabilities

728.9

541.0

Long-term debt

384.9

296.7

Other noncurrent liabilities

358.0

161.7

Total liabilities

1,471.8

999.4

Total equity

1,202.8

918.2

Total liabilities & equity

$

2,674.6

$

1,917.6

Modine Manufacturing Company

Condensed consolidated statements of cash flows (unaudited)

(In millions)

Twelve months ended March 31, 

2026

2025

Cash flows from operating activities:

Net earnings

$

123.3

$

185.5

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

Depreciation and amortization

79.7

77.7

Impairment charge

4.1

—

Loss on sale of assets

3.9

—

Pension termination charge

116.1

—

Stock-based compensation expense

22.1

26.4

Deferred income taxes

(39.1)

6.5

Other – net

7.0

6.9

Changes in operating assets and liabilities:

Trade accounts receivable

(222.6)

(61.2)

Inventories

(125.1)

13.6

Accounts payable

151.1

10.5

Accrued compensation and employee benefits

(13.5)

1.6

Contract liabilities

159.0

(44.5)

Other assets

(2.9)

15.3

Other liabilities

(14.4)

(25.0)

Net cash provided by operating activities

248.7

213.3

Cash flows from investing activities:

Expenditures for property, plant and equipment

(143.3)

(84.0)

Payments for business acquisitions, net of cash acquired

(182.4)

(3.4)

Other – net

4.4

0.8

Net cash used for investing activities

(321.3)

(86.6)

Cash flows from financing activities:

Net increase (decrease) in debt

78.7

(82.5)

Purchases of treasury stock

(7.0)

(30.9)

Other – net

1.4

(0.2)

Net cash provided by (used for) financing activities

73.1

(113.6)

Effect of exchange rate changes on cash

1.3

(1.5)

Net increase in cash, cash equivalents and restricted cash

1.8

11.6

Cash, cash equivalents and restricted cash – beginning of period

71.9

60.3

Cash, cash equivalents and restricted cash – end of period

$

73.7

$

71.9

Modine Manufacturing Company

Segment operating results (unaudited)

(In millions)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net sales:

Climate Solutions

$

665.9

$

356.3

$

2,062.3

$

1,440.8

Performance Technologies

294.0

294.8

1,131.8

1,163.5

Segment total

959.9

651.1

3,194.1

2,604.3

Corporate and eliminations

(5.5)

(3.9)

(13.0)

(20.8)

Net sales

$

954.4

$

647.2

$

3,181.1

$

2,583.5

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

$'s

% of
sales

$'s

% of
sales

$'s

% of
sales

$'s

% of
sales

Gross profit:

Climate Solutions

$

164.0

24.6

%

$

105.9

29.7

%

$

524.0

25.4

%

$

416.1

28.9

%

Performance Technologies

48.7

16.5

%

60.1

20.4

%

204.8

18.1

%

230.4

19.8

%

Segment total

212.7

22.2

%

166.0

25.5

%

728.8

22.8

%

646.5

24.8

%

Corporate and eliminations

2.0

—

—

—

2.3

—

(2.7)

—

Gross profit

$

214.7

22.5

%

$

166.0

25.7

%

$

731.1

23.0

%

$

643.8

24.9

%

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Operating income:

Climate Solutions

$

108.8

$

61.5

$

321.1

$

248.4

Performance Technologies

27.7

29.9

109.7

108.0

Segment total

136.5

91.4

430.8

356.4

Corporate and eliminations

(32.6)

(16.9)

(88.4)

(72.9)

Operating income

$

103.9

$

74.5

$

342.4

$

283.5

Modine Manufacturing Company

Adjusted financial results (unaudited)

(In millions, except per share amounts)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net earnings

$

73.6

$

50.1

$

123.3

$

185.5

Interest expense

8.6

5.3

31.6

26.4

Provision for income taxes

22.0

16.7

63.2

68.5

Depreciation and amortization expense

20.6

19.2

79.7

77.7

Other (income) expense  – net

(0.3)

2.4

8.2

3.1

Restructuring expenses (a)

5.2

10.0

20.6

28.2

Impairment charge (b)

—

—

4.1

—

Loss on sale of assets (c)

3.9

—

3.9

—

Pension termination charge (d)

—

—

116.1

—

Acquisition and integration costs (e)

—

0.3

5.3

2.3

Disposition costs (f)

12.5

—

15.0

—

Environmental charges (g)

—

0.1

—

0.4

Adjusted EBITDA

$

146.1

$

104.1

$

471.0

$

392.1

Net earnings per share attributable to Modine shareholders – diluted

$

1.36

$

0.92

$

2.26

$

3.42

Restructuring expenses (a)

0.07

0.16

0.30

0.45

Impairment charge (b)

—

—

0.08

—

Loss on sale of assets (c)

0.07

—

0.07

—

Pension termination charge (d)

—

—

1.92

—

Acquisition and integration costs (e)

—

0.04

0.08

0.18

Disposition costs (f)

0.17

—

0.20

—

Tax law changes (h)

0.04

—

0.11

—

Adjusted earnings per share

$

1.71

$

1.12

$

5.02

$

4.05

(a)

Restructuring expenses primarily consist of employee severance expenses and equipment transfer costs.  The tax benefit related to restructuring expenses during the fourth quarter of fiscal 2026 and fiscal 2025 was $1.3 million and $1.5 million, respectively.  The tax benefit related to restructuring expenses during fiscal 2026 and fiscal 2025 was $4.3 million and $4.0 million, respectively. 

(b)

During the second quarter of fiscal 2026, the Company recorded a $4.1 million non-cash asset impairment charge related to its technical service center and administrative support facility in Germany, which it expects to sell during fiscal 2027.  There was no tax impact associated with this impairment charge.

(c)

During the fourth quarter of fiscal 2026, the Company recorded a $3.9 million loss resulting from the settlement of a loan facility that it provided in connection with the sale of its Austrian automotive business in fiscal 2022.  There was no tax impact associated with this loss.

(d)

During the third quarter of fiscal 2026, the Company recorded a non-cash pension termination charge of $116.1 million to recognize actuarial losses that were included within accumulated other comprehensive loss on its consolidated balance sheet.  The tax benefit related to the pension termination charge was $13.1 million.  

(e)

The fiscal 2026 costs primarily relate to the acquisitions of Climate by Design International and L.B. White and include fees for transaction advisory services, legal, accounting, and other professional services and costs directly associated with integration activities.  The acquisition costs also include $1.3 million for the impact of inventory purchase accounting adjustments.  The fiscal 2025 costs relate to the acquisition of Scott Springfield Manufacturing, including $1.6 million for the impact of an inventory purchase accounting adjustment.  In addition, for purposes of calculating adjusted EPS in fiscal 2025, the Company adjusted for $10.6 million of incremental amortization expense recorded in the Climate Solutions segment associated with an acquired order backlog intangible asset.  The tax benefit related to the acquisition costs during fiscal 2026 and 2025 was $0.8 million and $2.9 million, respectively.  The tax benefit related to the acquisition costs during the fourth quarter of fiscal 2025 was $0.7 million. 

(f)

Disposition costs primarily relate to the proposed 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 fourth quarter and during fiscal 2026 was $3.2 million and $3.9 million, respectively.

(g)

Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to previously-owned facilities. 

(h)

The provisions of the One Big Beautiful Bill Act, which was enacted in July 2025, negatively impacted the Company's income tax expense for the fourth quarter and during fiscal 2026 by $2.1 million and $5.8 million, respectively.  The higher income tax expense was primarily due to impacts related to state deferred taxes and the utilization of foreign tax credits.

Modine Manufacturing Company

Segment adjusted financial results (unaudited)

(In millions)

Three months ended March 31, 2026

Three months ended March 31, 2025

Climate 

Performance 

Corporate and 

Climate 

Performance 

Corporate and 

Solutions

Technologies

eliminations

Total

Solutions

Technologies

eliminations

Total

Operating income

$

108.8

$

27.7

$

(32.6)

$

103.9

$

61.5

$

29.9

$

(16.9)

$

74.5

Depreciation and amortization expense

12.6

7.5

0.5

20.6

11.6

7.4

0.2

19.2

Restructuring expenses (a)

2.9

2.2

0.1

5.2

3.2

6.8

—

10.0

Loss on sale of assets (a)

—

—

3.9

3.9

—

—

—

—

Acquisition and integration costs (a)

—

—

—

—

—

—

0.3

0.3

Disposition costs (a)

—

—

12.5

12.5

—

—

—

—

Environmental charges (a)

—

—

—

—

—

—

0.1

0.1

Adjusted EBITDA

$

124.3

$

37.4

$

(15.6)

$

146.1

$

76.3

$

44.1

$

(16.3)

$

104.1

Net sales

$

665.9

$

294.0

$

(5.5)

$

954.4

$

356.3

$

294.8

$

(3.9)

$

647.2

Adjusted EBITDA margin

18.7

%

12.7

%

15.3

%

21.4

%

15.0

%

16.1

%

Twelve months ended March 31, 2026

Twelve months ended March 31, 2025

Climate 

Performance 

Corporate and 

Climate 

Performance 

Corporate and 

Solutions

Technologies

eliminations

Total

Solutions

Technologies

eliminations

Total

Operating income

$

321.1

$

109.7

$

(88.4)

$

342.4

$

248.4

$

108.0

$

(72.9)

$

283.5

Depreciation and amortization expense

47.5

30.8

1.4

79.7

48.3

28.7

0.7

77.7

Restructuring expenses (a)

8.5

11.9

0.2

20.6

6.0

20.5

1.7

28.2

Impairment charge (a)

—

4.1

—

4.1

—

—

—

—

Loss on sale of assets (a)

—

—

3.9

3.9

—

—

—

—

Acquisition and integration costs (a)

—

—

5.3

5.3

—

—

2.3

2.3

Disposition costs (a)

—

—

15.0

15.0

—

—

—

—

Environmental charges (a)

—

—

—

—

—

—

0.4

0.4

Adjusted EBITDA

$

377.1

$

156.5

$

(62.6)

$

471.0

$

302.7

$

157.2

$

(67.8)

$

392.1

Net sales

$

2,062.3

$

1,131.8

$

(13.0)

$

3,181.1

$

1,440.8

$

1,163.5

$

(20.8)

$

2,583.5

Adjusted EBITDA margin

18.3

%

13.8

%

14.8

%

21.0

%

13.5

%

15.2

%

(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)

March 31, 2026

March 31, 2025

Debt due within one year

$

51.4

$

54.1

Long-term debt

384.9

296.7

Total debt

436.3

350.8

Less: cash and cash equivalents

73.5

71.6

Net debt

$

362.8

$

279.2

Free cash flow (unaudited)

(In millions)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net cash provided by operating activities

$

194.9

$

54.8

$

248.7

$

213.3

Expenditures for property, plant and equipment

(42.1)

(27.7)

(143.3)

(84.0)

Free cash flow

$

152.8

$

27.1

$

105.4

$

129.3

Organic sales and organic sales growth (unaudited)

(In millions)

Three months ended March 31, 2026

Three months ended March 31, 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:

Climate Solutions

$

662.0

$

(17.1)

$

(38.2)

$

606.7

$

356.3

$

—

$

356.3

70

%

Performance Technologies

292.4

(12.0)

—

280.4

290.9

—

290.9

(4)

%

Net Sales

$

954.4

$

(29.1)

$

(38.2)

$

887.1

$

647.2

$

—

$

647.2

37

%

Twelve months ended March 31, 2026

Twelve months ended March 31, 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:

Climate Solutions

$

2,055.4

$

(37.6)

$

(119.1)

$

1,898.7

$

1,440.6

$

—

$

1,440.6

32

%

Performance Technologies

1,125.7

(25.3)

—

1,100.4

1,142.9

—

1,142.9

(4)

%

Net Sales

$

3,181.1

$

(62.9)

$

(119.1)

$

2,999.1

$

2,583.5

$

—

$

2,583.5

16

%

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

SOURCE Modine

Modine (MOD - Free Report) reported $954.4 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 47.5%. EPS of $1.71 for the same period compares to $1.12 a year ago.

The reported revenue represents a surprise of +5.19% over the Zacks Consensus Estimate of $907.34 million. With the consensus EPS estimate being $1.51, the EPS surprise was +13.49%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Modine performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Performance Technologies: $294 million compared to the $288.48 million average estimate based on two analysts. The reported number represents a change of -0.3% year over year.Net Sales- Climate Solutions: $665.9 million versus the two-analyst average estimate of $655.08 million. The reported number represents a year-over-year change of +86.9%.Adjusted EBITDA- Climate Solutions: $124.3 million versus the two-analyst average estimate of $131.66 million.Adjusted EBITDA- Corporate and eliminations: $-15.6 million versus $-18.41 million estimated by two analysts on average.Adjusted EBITDA- Performance Technologies: $37.4 million versus $31.36 million estimated by two analysts on average.View all Key Company Metrics for Modine here>>>

Shares of Modine have returned +6.4% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

The market consistently misprices the physical infrastructure required to sustain exponential technological growth. Right now, the structural bottleneck for artificial intelligence (AI) is not silicon availability. The true bottleneck is thermal management. Next-generation GPUs operate at thermal densities that shatter the limits of legacy cooling architectures. Hyperscalers recognize this physical limit and are aggressively locking down viable supply chains to prevent catastrophic deployment delays.

Get Modine Manufacturing alerts:

Breaking the Ice: Modine Leaves the Rust Belt BehindModine Manufacturing NYSE: MOD is squarely at the center of this exact friction point. Long viewed as a cyclical automotive sector and industrial sector supplier, Modine has reconstructed its operational DNA. With shares recently climbing past $300, Wall Street is grappling with the company's profound structural pivot. Modine has decoupled from its low-margin roots, securing massive guaranteed capacity lock-ups and shedding legacy assets to emerge as a pure-play AI infrastructure business.

Modine Manufacturing Today

MOD

Modine Manufacturing

$258.51 -19.67 (-7.07%)

As of 06/10/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$86.48▼

$323.25P/E Ratio115.40

Price Target$327.14

The most glaring indicator of an extreme supply-demand imbalance in the liquid cooling sector came in the form of a $4 billion Long-Term Capacity Agreement through 2029. Modine will supply cutting-edge Airedale cooling solutions to a strategic data center client, but the headline revenue figure is only part of the equation.

The crucial metric buried in the contract is the $165 million upfront cash payment from the customer to fund Modine's capital expenditures. When tier-one hyperscalers start directly financing a supplier's manufacturing footprint, investors should immediately recognize panic-buying. Customers are footing the bill to expand capacity because the alternative is millions of dollars in highly expensive, idle AI servers sitting in overheating data centers.

This upfront capital completely alters Modine's financial risk profile. The payment effectively de-risks the heavy capital intensity traditionally associated with rapid industrial expansion, providing immediate liquidity to bridge the gap toward sustained free cash flow generation.

While third-quarter free cash flow briefly dipped to negative $17 million due to necessary inventory builds for the data center ramp, this cash injection fortifies Modine's balance sheet, already resting on a healthy 0.51 debt-to-equity ratio and a 2.19 current ratio. Modine secures the capacity to scale without relying on toxic debt or shareholder dilution.

Dropping Deadweight to Ignite Structural MarginsRevenue growth means little if margin compression drags down the bottom line. To execute a pure-play data center transformation, Modine had to shed historical dead weight. Modine announced the spin-off of the automotive-focused Performance Technologies segment through a Reverse Morris Trust transaction with Gentherm NASDAQ: THRM.

The financial engineering behind this maneuver is highly accretive. The deal values the legacy Performance Technologies asset at $1 billion, translating to a respectable 6.8x trailing EBITDA. Modine walks away with $210 million in cash, while shareholders receive a 40% tax-free distribution in the newly combined Gentherm entity.

By jettisoning this lower-margin, highly cyclical revenue stream, Modine cleanses the income statement. The market no longer has to apply a conglomerate discount to Modine Manufacturing. Instead, Modine can now be benchmarked directly against high-growth, pure-play data center infrastructure peers like Vertiv NYSE: VRT and Schneider Electric OTCMKTS: SBGSY. The structural margin expansion unlocked by this divestiture clears the deck for rapid multiple expansion as Modine isolates the most profitable verticals.

TurboChill: The Megawatt Solution to Grid Limits AlternativeFundamental earnings momentum provides confirmation of the investment thesis. Modine's third-quarter results delivered $1.19 in earnings per share, beating the consensus estimate of 99 cents. Top-line revenue rose 30.5% year-over-year to $805 million, but the underlying segment data is where the true velocity lies. Organic data center sales accelerated by 78% year-over-year.

This growth is defended by a formidable technological moat. Modine recently launched the 3-megawatt TurboChill platform, specifically engineered to reject heat in high-density GPU environments. The system capitalizes on the higher ambient operating temperatures of modern chips, enabling data centers to use free cooling.

By dramatically lowering mechanical cooling requirements, Modine directly improves a facility's Power Usage Effectiveness. Power Usage Effectiveness remains the absolute holy grail metric for data center operators constrained by grid power limitations, which means Modine delivers undeniable ROI to end users.

Armed with this pricing power, management has guided for data center revenue to expand by 50% to 70% annually over the next two years, targeting a $2 billion run rate by fiscal 2028. Total Modine sales guidance for fiscal 2026 was consequently raised to 20% to 25% growth, reflecting strong revenue visibility over the next 24 months.

Wall Street Sweats as Modine Breaks the ThermometerDespite the undeniable fundamental shift, sell-side analysts are demonstrably behind the curve. The consensus average price target sits at a glaring $238.57. Even recent upward revisions fall short. B. Riley raised its target to $264, and GLJ Research initiated coverage at $290, yet both lag the trading price of over $300.

Modine Manufacturing Stock Forecast Today12-Month Stock Price Forecast:
$327.14
26.55% Upside

Moderate Buy
Based on 9 Analyst Ratings

Current Price$258.51High Forecast$428.00Average Forecast$327.14Low Forecast$263.00Modine Manufacturing Stock Forecast Details

This analytical disconnect creates a coiled spring for Modine stock. As legacy coverage models are forced to factor in the $4 billion capacity agreement, the $165 million cash injection, and the post-spin-off entity's margin profile, a wave of aggressive target recalibrations is expected. These forced upgrades will serve as secondary upside catalysts, which typically drive further institutional accumulation.

The mechanics of the trade heavily favor sustained upward price discovery. Institutional ownership is dominant at 95.23%, backed by $2.48 billion in trailing 12-month inflows against just $1.28 billion in outflows. Meanwhile, short interest sits at 3.47 million shares, or 6.75% of the public float. With a days-to-cover ratio of 4.4, any sharp uptick in volume threatens to ignite a rolling short squeeze.

Options market data confirms this aggressive forward positioning. Heavy call volume is currently concentrated at the $300 and $330 strike prices for June 2026 expirations, indicating that smart money is explicitly betting on breakout continuation rather than technical consolidation.

The Final Catalyst for a Re-RatingSkeptics will rightly point to the lack of insider accumulation. Executive leadership systematically sold shares, trailing up to the $184 level earlier in the year. While heavy insider selling often warrants caution, in this context, the selling reflects management de-risking personal portfolios before the ultimate breakout rather than a lack of faith in the underlying business model.

Trading at a forward price-to-earnings ratio of 63, Modine carries a premium valuation. With a price-to-earnings-growth ratio of 1.06, that premium remains tightly aligned with near-term earnings trajectories. Modine has transformed from an industrial auto-parts manufacturer into an essential provider of mission-critical AI picks and shovels. Backed by guaranteed capital, unmatched revenue visibility, and a rapidly expanding technological moat, Modine Manufacturing is undergoing a strong and permanent re-rating.

Should You Invest $1,000 in Modine Manufacturing Right Now?Before you consider Modine Manufacturing, you'll want to hear this.

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