Billionaire Mario Gabelli’s Portfolio Has This Under-the-Radar Data Center Stock
Modine Manufacturing (NYSE:MOD), a data center cooling stock, is part of billionaire Mario Gabelli's portfolio. Gabelli's fund holds 489,969 shares, worth $131 million, but has been reducing its stake. Modine's revenue grew 28% year-over-year in Q1 2027, with data centers contributing 35% of sales. The stock has a forward P/E of 29.13 and is rated a Strong Buy by analysts, despite risks tied to AI spending and execution challenges.
How this was made
The 30-second read
Why it matters
Earnings beat and guidance may attract short‑term buying, but fund sell‑down could offset gains.
Market read
Modine's earnings and fund activity provide a modest trading signal for the stock and indicate broader AI‑driven cooling demand.
What to watch
Long‑term capacity agreement through 2029 and backlog growth could sustain longer‑term upside.
Background
Mario Gabelli's GAMCO Investors hold a modest stake in Modine, recently reducing exposure while the company posts strong revenue growth from data‑center cooling.
Ticker impact
Modine reported Q4 FY2026 revenue up 47% and Q1 FY2027 revenue up 28% with EPS beat, while the fund trimmed its stake.
potential modest upside tempered by selling pressure from the fund trim
Positive earnings and guidance contrast with recent insider selling, creating mixed short-term direction.
Market effects
Highlights demand for data‑center cooling amid AI growth, may benefit peers in industrial cooling.
U.S. industrial sector sees modest boost from Modine's earnings.
Limited; primarily a U.S. small‑cap story.
Counterpoint
Fund trimming suggests valuation concerns; price may face pressure despite earnings beat.
Key entities
- companyModine Manufacturing Company
Data‑center cooling equipment maker (NYSE:MOD).
- investment_fundGAMCO Investors
Mario Gabelli's fund, holder of MOD shares.
