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Trane Technologies (TT) Surpasses Market Returns: Some Facts Worth Knowing

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Trane Technologies (TT - Free Report) closed the latest trading day at $359.67, indicating a +1.51% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.75%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.

The manufacturer's stock has climbed by 2.48% in the past month, falling short of the Business Services sector's gain of 5.97% and the S&P 500's gain of 4.03%.

The upcoming earnings release of Trane Technologies will be of great interest to investors. The company's upcoming EPS is projected at $3.22, signifying a 15.41% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.29 billion, up 8.42% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.87 per share and revenue of $19.54 billion. These totals would mark changes of +20.24% and +10.55%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Trane Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.45% upward. Trane Technologies is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Trane Technologies is holding a Forward P/E ratio of 32.58. This indicates a premium in contrast to its industry's Forward P/E of 23.01.

Investors should also note that TT has a PEG ratio of 2.45 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.45.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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