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

The U.S. automotive – original equipment manufacturer (OEM) industry has been facing a challenging environment. U.S. vehicle sales are expected to moderate in 2026 as high interest rates, elevated car prices, and tighter household budgets continue to weigh on affordability.

Nevertheless, we have narrowed our search to three auto OEM stocks with a top Zacks Rank that have seen positive earnings and revenue estimate revisions in the last seven days. These companies came up with strong results in their last reporting quarter. Market participants are expecting these companies to do robust business this year despite a tough landscape. 

These companies are: Modine Manufacturing Co. MOD, Atmus Filtration Technologies Inc. ATMU and LCI Industries LCII. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Modine Manufacturing Co.

Modine reported third-quarter fiscal 2026 adjusted earnings of $1.19 per share, beating the Zacks Consensus Estimate of $0.99 per share. Quarterly revenues of $805 million surpassed the Zacks Consensus Estimate by 5.90%.

MOD presents a compelling growth story driven by accelerating data center demand, expanding margins and disciplined portfolio transformation. MOD is benefiting from strong hyperscale exposure and multi-year pipeline visibility, with management expecting 50-70% annual growth in the data center business over the next two fiscal years.

Long-term capacity agreements enhance MOD’s revenue predictability. The pipeline expansion reflects structural AI-driven infrastructure demand, supporting operating leverage and improving earnings visibility.

Modine’s Climate Solutions segment is showing margin expansion momentum. Margins improved sequentially in fiscal third-quarter 2026. For the fourth quarter, the company expects segment margins in the 20-21% range and anticipates exiting fiscal 2026 at its highest quarterly margin level to date. MOD has set a fiscal 2027 margin target of 20-23% for Climate Solutions, implying continued improvement.

Modine is advancing its portfolio transformation through a Reverse Morris Trust that will combine its Performance Technologies business with Gentherm. Post-transaction, MOD will emerge as a pure-play diversified Climate Solutions company. The deal is set to close in the fourth quarter of calendar year 2026.

Modine has an expected revenue and earnings growth rate of 21.3% and 49.9%, respectively, for the next year (ending March 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.6% in the last seven days. 

Atmus Filtration Technologies Inc.

Atmus Filtration Technologies designs and manufactures filtration and media solutions. ATMU serves customers across truck, bus, agriculture, construction, mining, marine and power generation vehicle and equipment markets. ATMU sells filtration products under the Fleetguard brand in the United States and internationally.

ATMU came up with fourth-quarter 2025 earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.57 per share. Quarterly revenues of $446.6 million outpaced the Zacks Consensus Estimate by 5.75%.

Atmus Filtration Technologies has an expected revenue and earnings growth rate of 13% and 7.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.6% in the last seven days. 

LCI Industries

LCI Industries is a supplier of components to the recreational vehicle and manufactured housing industries as well as adjacent industries, including bus, cargo and equestrian trailer, marine and heavy truck. LCII operates through two segments, Original Equipment Manufacturers and Aftermarket.

LCII’s product portfolio includes awnings, suspension enhancement, chassis, doors and laminates, electronics, interior, software and apps, windows and glass, thermoformed bath and kitchen products.

LCII posted fourth-quarter 2025 earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.69 per share. Quarterly revenues of $932.7 million outpaced the Zacks Consensus Estimate by 1.59%.

LCI Industries has an expected revenue and earnings growth rate of 3.5% and 17.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.2% in the last seven days. 

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This article originally published on Zacks Investment Research (zacks.com).

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