12 Best Consumer Discretionary Stocks to Buy According to Analysts

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5. Modine Manufacturing Company (NYSE:MOD)

Upside Potential: 54%

Number of Hedge Fund Holders: 32

Modine Manufacturing Company (NYSE:MOD) specializes in thermal management and energy-efficient solutions. The company designs and produces a variety of products, including heat exchangers, radiators, and HVAC systems, catering to automotive, industrial, and commercial markets. For the vehicle manufacturers (OEMs), the company makes high-quality heating and cooling systems for vehicles used on roads and off-road.

Fred Alger Management, an investment management firm with holdings in Modine Manufacturing Company (NYSE:MOD), released its “Alger Small Cap Growth Fund” investor letter for Q4 2024. The firm recognized Modine Manufacturing Company (NYSE:MOD) as having good catalysts and made the following remarks about the company:

“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.”

Modine Manufacturing Company (NYSE:MOD) reported its Q3 2025 (FY ending March 2025) results amid tough market conditions, but still they were better than street expectations. It reported revenue headwinds in the quarter given the extended seasonal shutdowns, combined with softness in its auto, commercial vehicle, agriculture and construction equipment markets. That said, its data center revenue surged 176% in the quarter due to strong growth from the Scott Springfield Manufacturing (SSM) acquisition and organic growth driven by North America colocation customers. Despite the headwinds, the company reiterated its guidance for FY 2025. Its long-term outlook is supported by its strategy to transition the portfolio mix to higher margin and growth businesses. It is actively optimizing its business portfolio which should lower costs and improve earnings in coming years. On February 5, D.A. Davidson analyst reiterated his Buy rating on Modine Manufacturing Company (NYSE:MOD) with a price target of $155.

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