10 Best GARP Stocks to Buy Now

7. Modine Manufacturing Company (NYSE:MOD)

Fwd. P/E: 21

Expected EPS Growth Next FY: 22%

Number of Hedge Fund Holders: 43

Upside Potential: 86%

Modine Manufacturing Company (NYSE:MOD) manufactures and sells innovative and environmentally responsible thermal management products and solutions to a wide range of customers in commercial, industrial, and HVAC&R markets. They are also a leading provider of engineered heat transfer systems and high-quality components for on- and off-highway OEM vehicular applications.

Modine Manufacturing Company (NYSE:MOD) recently secured a $180 million order for its Airedale by Modine data center cooling systems from a major AI infrastructure developer, with deliveries planned through 2025 and early 2026. This milestone highlights the company’s growing presence in the hyperscale data center market and reinforces its reputation for delivering cost-efficient, high-performance cooling solutions. The strong growth in the company’s data center revenue in the third quarter of 2024 further underscores its momentum in this space.

Analyst Brian Drab of William Blair remains bullish on Modine Manufacturing Company (NYSE:MOD), maintaining a Buy rating due to its strong growth outlook. He expects the aforementioned order to drive over 30% organic growth in the company’s data center revenue for fiscal 2026, exceeding previous projections. Despite broader concerns over data center capital expenditures, the sustained demand for Modine’s high-efficiency Airedale cooling systems signals confidence in its offerings. The analyst also views the recent dip in the company’s share price as a compelling buying opportunity, reaffirming his Outperform rating on the stock.