3 Top Auto OEM Stocks With Solid Estimates Revision in a Tough Scenario

Industry Overview - The U.S. automotive OEM industry is currently facing a challenging environment with vehicle sales expected to moderate in 2026 due to high interest rates, elevated car prices, and tighter household budgets impacting affordability [1] Company Highlights Modine Manufacturing Co. (MOD) - Modine reported third-quarter fiscal 2026 adjusted earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $0.99 per share, with quarterly revenues of $805 million surpassing estimates by 5.90% [4] - The company is experiencing strong growth driven by increasing data center demand, expanding margins, and disciplined portfolio transformation, with management expecting 50-70% annual growth in the data center business over the next two fiscal years [5][6] - Modine's Climate Solutions segment is showing margin expansion, with expectations of segment margins in the 20-21% range for the fourth quarter and a fiscal 2027 margin target of 20-23% [7] - The company is advancing its portfolio transformation through a Reverse Morris Trust, which will position it as a pure-play diversified Climate Solutions company, with the deal expected to close in the fourth quarter of calendar year 2026 [8] - Modine has an expected revenue growth rate of 21.3% and an earnings growth rate of 49.9% for the next year ending March 2027, with the Zacks Consensus Estimate for next year's earnings improving by 0.6% in the last seven days [9] Atmus Filtration Technologies Inc. (ATMU) - Atmus reported fourth-quarter 2025 earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.57 per share, with revenues of $446.6 million exceeding estimates by 5.75% [12] - The company has an expected revenue growth rate of 13% and an earnings growth rate of 7.3% for the current year, with the Zacks Consensus Estimate for current year's earnings improving by 4.6% in the last seven days [12] LCI Industries (LCII) - LCI Industries posted fourth-quarter 2025 earnings of $0.89 per share, surpassing the Zacks Consensus Estimate of $0.69 per share, with quarterly revenues of $932.7 million exceeding estimates by 1.59% [14] - The company has an expected revenue growth rate of 3.5% and an earnings growth rate of 17.8% for the current year, with the Zacks Consensus Estimate for current year's earnings improving by 7.2% in the last seven days [15]