Core Insights - The earnings season reveals opportunities in lesser-known companies alongside major firms, highlighting the importance of broad market analysis [1] Modine Manufacturing - Modine Manufacturing Co. reported a 13-cent earnings per share beat and revenue exceeding analyst estimates in its recent earnings report for Q1 fiscal 2026 [2] - The company aims for $2 billion in data center revenue by fiscal 2028, with its climate solutions segment generating $1.4 billion in sales for fiscal 2025 [3] - Modine's strategic acquisitions contributed to a 11% year-over-year revenue growth, with a revised full-year fiscal 2026 outlook of 10-15% growth [4] - Modine shares increased by 28% in the last month, with an additional 7% upside potential projected [4] CECO Environmental - CECO Environmental Corp. exceeded analyst expectations, achieving a 35% year-over-year increase in EPS and a 45% rise in EBITDA [5] - The company anticipates $725–775 million in revenue for the full year, with shares up 50.4% in the last month and a potential 9% upside [8] - CECO's sales opportunity pipeline has grown to $5.5 billion, with a backlog of $688 million, reflecting a 274 million new bookings [7] Expro Group - Expro Group Holdings N.V. reported an 8% year-over-year revenue increase, surpassing predictions despite energy sector volatility [9] - The company expects about $1.7 billion in full-year revenue and plans a $40 million share buyback campaign [11] - Expro shares rose nearly 17% in the last month, with over 16% additional upside possible [11]

Core Viewpoint - Modine (MOD) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system highlights the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, which can drive stock price movements [3]. Business Improvement Indicators - The upgrade in Modine's rating suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and near-term stock movements, emphasizing the need for investors to track these revisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a structured approach for investment decisions [6]. Modine's Earnings Estimate Details - For the fiscal year ending March 2026, Modine is expected to earn $4.63 per share, with a 0.6% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - Modine's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Core Viewpoint - Investors are evaluating the value opportunities presented by Phinia (PHIN) and Modine (MOD) in the Automotive - Original Equipment sector, with a focus on which stock offers better value at the current time [1] Valuation Metrics - Both PHIN and MOD currently hold a Zacks Rank of 1 (Strong Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3] - PHIN has a forward P/E ratio of 11.26, significantly lower than MOD's forward P/E of 29.92, suggesting that PHIN may be undervalued [5] - The PEG ratio for PHIN is 0.46, while MOD's PEG ratio is 0.88, indicating that PHIN has a more favorable valuation relative to its expected earnings growth [5] - PHIN's P/B ratio is 1.18, compared to MOD's P/B ratio of 7.14, further supporting the notion that PHIN is the more attractive value option [6] Value Grades - Based on various valuation metrics, PHIN holds a Value grade of A, while MOD has a Value grade of C, indicating that PHIN is perceived as the superior value investment at this time [6]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for maintaining momentum in stock prices [1]. Group 1: Stock Performance - Modine (MOD) has shown a solid price increase of 36.6% over the past 12 weeks, indicating strong investor interest [3]. - The stock has also experienced a price increase of 38.7% over the last four weeks, suggesting that the upward trend is still intact [4]. - MOD is currently trading at 89.9% of its 52-week high-low range, indicating a potential breakout [4]. Group 2: Fundamental Strength - MOD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like MOD that are on an uptrend supported by strong fundamentals [2]. - There are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [7].

Core Insights - Modine Manufacturing reported Q1 FY2026 results with significant growth in Climate Solutions and data center cooling, but missed revenue and earnings expectations [1][5] - The company raised its full-year guidance for net sales growth to 10% to 15% and adjusted EBITDA to $440 million to $470 million, anticipating acceleration in the second half of the fiscal year [1][11] Financial Performance - GAAP revenue for Q1 FY2026 was $682.8 million, missing analyst estimates by $111.1 million; Non-GAAP EPS was $1.06, falling short of the $1.34 consensus [1][2] - Year-over-year revenue increased by 3.2% compared to Q1 FY2025, driven by strong demand in data center cooling and HVAC technologies [5] - Free cash flow dropped significantly to $0.2 million from $13.7 million a year ago, primarily due to increased inventory [8] Segment Performance - The Climate Solutions segment saw an 11% increase in net sales to $397.4 million, with improved gross margin at 28.4% and adjusted EBITDA rising 10% to $79.4 million [5][6] - The Performance Technologies segment experienced an 8% revenue decline and a 16% drop in operating income, with gross margin compressing to 18.2% [6] Strategic Focus - Modine is concentrating on its Climate Solutions segment, particularly in data center cooling, applying an 80/20 principle to prioritize high-growth, high-margin products [4] - Recent innovations include new modular data center cooling products aimed at facilitating rapid deployment for customers [7] Future Outlook - Management's raised guidance reflects optimism for accelerated revenue growth in data center cooling, supported by new manufacturing capacity in North America [11][12] - The company emphasizes sustainability and environmental responsibility, with $35 million invested in R&D for energy-efficient products [10]

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) Q1 FY2026 unaudited financials report 3.2% net sales growth to $682.8M and 8.2% net earnings increase to $51.2M, with assets growing to $2,228.5M [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 FY2026 net sales increased 3.2% to $682.8M, operating income rose to $75.7M, and net earnings grew 8.2% to $51.2M Consolidated Statements of Operations Highlights (Q1 FY2026 vs Q1 FY2025) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $682.8 M | $661.5 M | +3.2% | | Gross profit | $165.4 M | $162.6 M | +1.7% | | Operating income | $75.7 M | $74.4 M | +1.7% | | Net earnings attributable to Modine | $51.2 M | $47.3 M | +8.2% | | Diluted EPS | $0.95 | $0.88 | +8.0% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$2,228.5M** by June 30, 2025, driven by acquisitions and increased inventories, while total liabilities rose to **$1,209.8M** Key Balance Sheet Items (June 30, 2025 vs March 31, 2025) | Account | June 30, 2025 (M) | March 31, 2025 (M) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $124.5 | $71.6 | | Inventories | $434.8 | $340.9 | | Goodwill | $268.2 | $233.9 | | Total assets | $2,228.5 | $1,917.6 | | **Liabilities & Equity** | | | | Long-term debt | $482.1 | $296.7 | | Total liabilities | $1,209.8 | $999.4 | | Total Modine shareholders' equity | $1,011.5 | $910.2 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2026 operating cash flow decreased to **$27.7M**, investing activities used **$144.0M** for acquisitions, and financing provided **$166.9M** from debt Cash Flow Summary (Q1 FY2026 vs Q1 FY2025) | Cash Flow Activity | Three months ended June 30, 2025 (M) | Three months ended June 30, 2024 (M) | | :--- | :--- | :--- | | Net cash provided by operating activities | $27.7 | $40.5 | | Net cash used for investing activities | $(144.0) | $(26.5) | | Net cash provided by financing activities | $166.9 | $0.0 | | Net increase in cash | $52.8 | $12.9 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail **$121.8M** in acquisitions, strong Data Centers revenue growth, U.S. pension plan termination, and amended credit facilities post-quarter - Acquired AbsolutAire for **$11.3 million** on April 1, 2025, and L.B. White for **$110.5 million** on May 31, 2025. A third acquisition, Climate by Design, was completed on July 1, 2025, for **$64.1 million**[25](index=25&type=chunk)[28](index=28&type=chunk)[37](index=37&type=chunk) - Data Centers product group revenue grew to **$186.9 million** from **$162.6 million** year-over-year, driving growth in the Climate Solutions segment[42](index=42&type=chunk) - Approved the termination of its primary U.S. pension plan, expecting to make additional cash contributions of **$17.0** to **$22.0 million** and record non-cash settlement charges of **$115.0** to **$125.0 million** in the second half of fiscal 2026[49](index=49&type=chunk) - In July 2025, the company executed an amended credit agreement, providing a **$400.0 million** revolving credit facility and a **$200.0 million** term loan facility, both maturing in July 2030[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 net sales up 3% driven by Climate Solutions and acquisitions, offset by Performance Technologies decline, with gross margin slightly down and strong liquidity [Consolidated Results of Operations](index=35&type=section&id=Consolidated%20Results%20of%20Operations) Q1 net sales rose 3% to **$682.8M**, driven by Climate Solutions, while gross margin declined 40 basis points to **24.2%** due to higher material costs - Q1 net sales increased by **$21.3 million** (**3%**) YoY, primarily due to a **$40.1 million** sales increase in Climate Solutions, driven by data center customers and **$10.0 million** from new acquisitions[103](index=103&type=chunk) - Gross margin declined by **40 basis points** to **24.2%**, as higher material costs and unfavorable sales mix in the Performance Technologies segment offset gains elsewhere[104](index=104&type=chunk)[105](index=105&type=chunk) - SG&A expenses increased by **$2.1 million**, reflecting higher compensation in the growing Climate Solutions segment and **$1.4 million** in acquisition-related costs[106](index=106&type=chunk) - The effective tax rate decreased to **21.3%** from **28.2%** in the prior year, primarily due to changes in the geographic mix of earnings[58](index=58&type=chunk)[110](index=110&type=chunk) [Segment Results of Operations](index=39&type=section&id=Segment%20Results%20of%20Operations) Climate Solutions net sales grew 11% to **$397.4M** driven by data centers and acquisitions, while Performance Technologies net sales declined 8% to **$285.5M** due to market weakness Climate Solutions Segment Performance (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $397.4 M | $357.3 M | +11.2% | | Gross Profit | $112.9 M | $100.8 M | +12.0% | | Operating Income | $66.9 M | $59.8 M | +11.9% | | Operating Margin | 16.8% | 16.7% | +10 bps | Performance Technologies Segment Performance (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $285.5 M | $309.0 M | -7.6% | | Gross Profit | $51.9 M | $63.5 M | -18.3% | | Operating Income | $26.5 M | $31.5 M | -15.9% | | Operating Margin | 9.3% | 10.2% | -90 bps | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operating cash flow of **$27.7M** and credit facilities, with **$119.0M** spent on acquisitions and **$100.0M** planned for data center capacity expansion - Net cash from operating activities decreased to **$27.7 million** from **$40.5 million** YoY, mainly due to higher inventory levels to support growing data center customer demand[125](index=125&type=chunk) - The company plans to invest **$100.0 million** over the next twelve months to expand manufacturing capacity in the U.S. for data center products[126](index=126&type=chunk) - Paid **$119.0 million** for the acquisitions of L.B. White and AbsolutAire during the quarter, and an additional **$64.1 million** for Climate by Design International on July 1, 2025[127](index=127&type=chunk) - Net borrowings on credit facilities increased by **$172.0 million** in Q1 to fund acquisitions. The company was in compliance with all debt covenants as of June 30, 2025[128](index=128&type=chunk)[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) No material changes in market risks have occurred since the fiscal 2025 Form 10-K filing, with prior disclosures incorporated by reference - There have been no material changes in the company's market risks since the fiscal 2025 Form 10-K was filed[144](index=144&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures.) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during Q1 FY2026 - Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[145](index=145&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[146](index=146&type=chunk) PART II [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No shares were repurchased under the program in Q1 FY2026, but **53,840** shares were acquired for tax withholding, with **$81.6M** remaining authorized - No shares were purchased under the publicly announced share repurchase program during the quarter[148](index=148&type=chunk) - The company acquired **53,840 shares** from employees/directors to satisfy tax withholding obligations related to vested stock awards[148](index=148&type=chunk) - As of June 30, 2025, **$81.6 million** remains available for repurchase under the company's share repurchase authorization, which has no expiration date[148](index=148&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information.) Director Suresh V. Garimella adopted a Rule 10b5-1 plan on May 23, 2025, to sell **72,344** shares between August 2025 and September 2027 - Director Suresh V. Garimella adopted a Rule 10b5-1 stock sale plan on May 23, 2025, for the sale of **72,344 shares** between August 2025 and September 2027[149](index=149&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with Form 10-Q, including merger agreements, amended credit facilities, and officer certifications

Financial Data and Key Metrics Changes - Modine reported a 3% increase in first-quarter sales, driven primarily by growth in the Climate Solutions segment [24] - Adjusted EBITDA margin was 14.9%, down 40 basis points from the prior year, attributed to lower Performance Technologies volume and new investments in Climate Solutions [25] - Adjusted earnings per share was $1.06, a 2% increase compared to the previous year [27] Business Line Data and Key Metrics Changes - Climate Solutions segment revenue increased by 11%, with adjusted EBITDA improving by 10% and an adjusted EBITDA margin of 20% [17] - Data center sales grew by $24 million or 15% from the prior year, driven by higher sales in North America [17] - Performance Technologies revenues decreased by 8%, with adjusted EBITDA declining by 14% and adjusted EBITDA margin decreasing to 13.1% [12][22] Market Data and Key Metrics Changes - North America data center business is experiencing extraordinary demand, with expectations to approach $2 billion in revenues by fiscal 2028 [9] - The company anticipates a significant acceleration in data center sales in the second half of the fiscal year, with expected growth of over 80% [31] Company Strategy and Development Direction - The company has completed three strategic acquisitions this fiscal year to enhance its manufacturing capacity and product offerings [4] - Modine is focusing on organic growth in the data center business while also pursuing inorganic growth through acquisitions [4][7] - The company aims to maintain a balanced portfolio with strong organic growth in data centers and complementary solutions in HVAC technologies [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising revenue and earnings outlook for fiscal 2026 due to strong market demand and recent acquisitions [4] - The Performance Technologies segment is navigating tough market conditions, with expectations of continued challenges in vehicular markets [12] - Management highlighted the importance of strategic partnerships and innovation in meeting evolving customer demands in the data center segment [11] Other Important Information - The company plans to invest an additional $100 million in capital expenditures over the next 12 to 18 months to support growth [33] - Modine's net debt increased by $123 million compared to the prior fiscal year end, primarily due to recent acquisitions [28] Q&A Session Summary Question: Can you talk about the magnitude of unabsorbed cost in the Climate business related to the DC build-out? - Management indicated that core capacity will convert at good margins, while incremental capital investments may convert at a lower rate due to added resources for engineering support [39] Question: How should we think about the fiscal 2027 data center revenue target? - Management suggested a straight-line approach for estimating fiscal 2027 revenue, trending towards a billion this fiscal year [41] Question: Will margins improve in the second half of the year? - Management expects total company margins to improve, driven mainly by Performance Technologies, with significant growth anticipated in the second half [45] Question: Can you provide clarity on capacity expansion and expected returns? - Management confirmed high returns on investment for capacity expansion, estimating over 40% return on invested capital [57] Question: What is the visibility on demand and capacity for the data center business? - Management stated they have visibility extending beyond a year, with commitments from customers driving the need for additional capacity [70] Question: Can you provide updates on divestiture processes? - Management mentioned ongoing efforts to sell the European headquarters and plans to exit the light-duty business, with expected closure later this year [76][77] Question: Are you expanding data center service capabilities alongside production? - Management confirmed that they are building out service capabilities to support the growth in equipment sales [101] Question: What is the outlook for future acquisitions? - Management indicated a pause on acquisitions for a couple of quarters to digest recent acquisitions and focus on data center expansion [98]

Financial Data and Key Metrics Changes - Modine reported a 3% increase in total sales for Q1, driven primarily by growth in the Climate Solutions segment [25] - Adjusted earnings per share was $1.06, a 2% increase compared to the prior year [27] - Adjusted EBITDA margin decreased by 40 basis points to 14.9% due to lower performance in the Performance Technologies segment [26] Business Line Data and Key Metrics Changes - Climate Solutions segment saw an 11% increase in revenue and a 10% improvement in adjusted EBITDA, with an adjusted EBITDA margin of 20% [18] - Data center sales grew by $24 million or 15% from the prior year, primarily due to higher sales in North America [18] - Performance Technologies revenues declined by 8%, with adjusted EBITDA down 14% and adjusted EBITDA margin decreasing to 13.1% [21][23] Market Data and Key Metrics Changes - North America data center business is experiencing extraordinary demand, with expectations to approach $2 billion in revenues by fiscal 2028 [11] - The company anticipates a significant acceleration in data center sales in the second half of the fiscal year, projecting a growth of over 80% [31] Company Strategy and Development Direction - The company is focusing on organic growth through capacity investments and product innovation, with a recent $100 million investment to expand manufacturing capacity [9] - Recent acquisitions are aimed at expanding the product portfolio and creating scale in key climate solutions businesses [5][8] - The company is maintaining a balanced portfolio with a strong focus on high-growth areas like data centers while managing costs in underperforming segments [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising revenue and earnings outlook for fiscal 2026, driven by strong market demand and recent acquisitions [5][30] - The Performance Technologies segment is expected to continue facing market headwinds, but management is optimistic about future profitability as volumes return [14][24] - The company is committed to reinvesting in growth and expects to see margin improvements in the second half of the fiscal year [26][32] Other Important Information - The company generated $200,000 of free cash flow in the quarter, lower than the prior year due to higher inventory levels [28] - Net debt increased by $123 million compared to the prior fiscal year end, primarily due to recent acquisitions [29] - The company plans to invest an additional $100 million in capital expenditures over the next 12 to 18 months [33] Q&A Session Summary Question: Can you talk about the magnitude of unabsorbed cost in the Climate business related to the DC build-out? - Management indicated that core capacity will convert at good margins, but incremental capital investments may convert at a lower rate due to added resources for engineering support [40] Question: How should we think about the fiscal 2027 data center revenue target? - Management suggested a straight-line approach for estimating fiscal 2027 revenue, trending towards a billion this fiscal year [42] Question: Will margins improve in the second half of the year? - Management expects total company margins to improve, primarily driven by Performance Technologies, with significant volume increases anticipated in the second half [45] Question: Can you provide clarity on capacity expansion and expected revenue? - Management stated that to achieve the $2 billion goal for fiscal 2028, approximately $2.5 billion in capacity is needed, with the recent $100 million investment expected to significantly contribute to this capacity [54] Question: What is the expected interest expense for fiscal 2026? - Management estimated interest expense to be in the range of $28 million to $30 million for fiscal 2026 [85]

Financial Performance - Net sales increased to $682.8 million, up from $661.5 million, a 3.2% increase[15] - Adjusted EBITDA grew to $101.4 million from $100.9 million, with a margin of 14.9%[15] - Adjusted EPS increased by 2% to $1.06[17] - Free cash flow was slightly positive at $0.2 million[18] Segment Performance - Climate Solutions - Climate Solutions revenue increased by 11%[6] - Climate Solutions adjusted EBITDA increased by 10%[6] - Climate Solutions net sales were $397.4 million, a 15% increase from $357.3 million[11] - Data Centers sales grew significantly, driving overall growth in Climate Solutions[11] Segment Performance - Performance Technologies - Performance Technologies revenues decreased by 8%[9] - Performance Technologies adjusted EBITDA decreased by 14%[9] - Performance Technologies net sales were $285.5 million, down from $309.0 million[13] Fiscal Year 2026 Outlook - The company raised its revenue outlook to +10% to +15%, projecting $2.84 billion to $2.97 billion in net sales[19] - Adjusted EBITDA is expected to be between $440 million and $470 million, a +12% to +20% increase[19] - Climate Solutions revenue is projected to grow by +25% to +35%[19] - Performance Technologies revenue is expected to decline by (2%) to (12%)[19]

Core Insights - Modine reported revenue of $682.8 million for the quarter ended June 2025, reflecting a 3.2% increase year-over-year and a surprise of +4.87% over the Zacks Consensus Estimate of $651.12 million [1] - Earnings per share (EPS) for the quarter was $1.06, up from $1.04 in the same quarter last year, with an EPS surprise of +13.98% compared to the consensus estimate of $0.93 [1] Financial Performance Metrics - Net Sales for Climate Solutions reached $397.4 million, exceeding the average estimate of $384.4 million from three analysts [4] - Net Sales for Corporate and eliminations was reported at $-0.1 million, better than the average estimate of $-4.98 million [4] - Net Sales for Performance Technologies was $285.5 million, surpassing the average estimate of $273.68 million [4] - Adjusted EBITDA for Climate Solutions was $79.4 million, above the average estimate of $75.01 million [4] - Adjusted EBITDA for Corporate and eliminations was reported at $-15.5 million, compared to the average estimate of $-16.96 million [4] - Adjusted EBITDA for Performance Technologies was $37.5 million, slightly below the average estimate of $38.91 million [4] Stock Performance - Modine's shares have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]