10 Best Stocks to Buy According to Billionaire Mario Gabelli

6. Modine Manufacturing Company (NYSE:MOD)

Number of Hedge Fund Holders: 43

GAMCO Investors’ Stake: $139.6 million

Modine Manufacturing Company (NYSE:MOD) offers thermal management solutions to diversified markets and customers. The company designs, manufactures, and markets products for cooling, heating, and ventilation throughout various industries. DA Davidson analysts maintained a positive outlook on the company’s shares, reiterating a “Buy” rating with a steady target price of $155.00. The firm’s analysts noted Modine Manufacturing Company (NYSE:MOD)’s potential to achieve strong market growth in its Data Center business, strengthened by technological advancements and new customer acquisitions.

Modine Manufacturing Company (NYSE:MOD)’s initiatives to gain market share with the help of technology-led initiatives as well as to continue attracting new clients have been regarded as critical drivers for the company’s Data Center business. Despite the challenges in the Performance Technologies segment, Modine Manufacturing Company (NYSE:MOD) has maintained a strong outlook for data center business, thanks to organic growth and strategic acquisitions.

Elsewhere, William Blair analyst Brian Drab maintained the bullish stance on the company, giving a “Buy” rating.

Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Modine Manufacturing Company (NYSE:MOD) provides a diverse range of systems and solutions that improve indoor air quality, cool data centers, conserve natural resources, reduce harmful emissions, and promote environmentally friendly refrigerants. Since the appointment of a new CEO in December 2020, the company has undergone a significant transformation, simplifying its business, aligning strategies by market verticals, and adopting the 80/20 business philosophy (i.e., prioritizing 20% of inputs that drive 80% of outcomes) to drive decision-making. Despite reporting strong fiscal second-quarter results, shares detracted from performance due to the absence of a forward guidance raise, which was attributed to the company’s strategic move away from lower-margin vehicle business. In our view, Modine remains in the midst of a significant transformation, with increasing recognition in the high-growth data center cooling market, where it is positioned as a strong competitor and potential market share gainer.”