Company Performance - Trane Technologies' shares have increased by 14.6% over the past month and reached a new 52-week high of $398, with a year-to-date gain of 62.6% compared to 14.6% for the Zacks Business Services sector and 30.6% for the Zacks Technology Services industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $3.3 against a consensus estimate of $3.08 in its last earnings report on July 31, 2024 [2] Financial Projections - For the current fiscal year, Trane Technologies is projected to achieve earnings of $10.88 per share on revenues of $19.55 billion, reflecting a 20.35% increase in EPS and a 10.61% increase in revenues [3] - The next fiscal year is expected to see earnings of $12.30 per share on revenues of $20.95 billion, indicating year-over-year changes of 13.02% in EPS and 7.13% in revenues [3] Valuation Metrics - The stock trades at a valuation of 36.5X current fiscal year EPS estimates, which is higher than the peer industry average of 24.3X, and at 37.1X on a trailing cash flow basis compared to the peer group's average of 12.5X [7] - Trane Technologies has a PEG ratio of 2.73, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank - Trane Technologies holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which is favorable for investors [8] - The company meets the criteria for selection based on Zacks Rank and Style Scores, suggesting potential for further share price appreciation in the near term [9] Industry Comparison - The Technology Services industry is positioned in the top 33% of all industries, indicating favorable conditions for both Trane Technologies and its peer, Cellebrite DI Ltd. [12] - Cellebrite DI Ltd. has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $0.41 on revenues of $395.67 million for the current fiscal year [10][11]

Company Overview - Trane Technologies (TT) currently holds a Momentum Style Score of B, indicating a positive outlook based on its price change and earnings estimate revisions [2][3] - The company has a Zacks Rank of 2 (Buy), which suggests strong potential for outperformance in the market [3] Price Performance - Over the past week, TT shares increased by 1.15%, while the Zacks Technology Services industry experienced a decline of 0.3% [5] - In a longer time frame, TT's monthly price change is 13.04%, significantly outperforming the industry's 1.96% [5] - Over the last quarter, TT shares have risen by 14.47%, and they have gained 91.05% over the past year, compared to the S&P 500's increases of 2.69% and 33.98%, respectively [6] Trading Volume - The average 20-day trading volume for TT is 996,454 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, three earnings estimates for TT have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.76 to $10.88 [9] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [9] Conclusion - Considering the positive price momentum, strong earnings outlook, and favorable trading volume, TT is positioned as a solid momentum pick with a 2 (Buy) rating and a Momentum Score of B [9]

Company Performance - Trane Technologies' shares have increased by 6.3% over the past month, reaching a new 52-week high of $370.22, and have gained 51.3% since the start of the year, outperforming the Zacks Business Services sector (14.2%) and the Zacks Technology Services industry (24.3%) [1] - The company has consistently exceeded earnings expectations, reporting an EPS of $3.3 against a consensus estimate of $3.08 in its last earnings report on July 31, 2024 [2] Financial Projections - For the current fiscal year, Trane Technologies is projected to achieve earnings of $10.87 per share on revenues of $19.54 billion, reflecting a 20.24% increase in EPS and a 10.55% increase in revenues [3] - The next fiscal year forecasts earnings of $12.29 per share on $20.9 billion in revenues, indicating a year-over-year change of 13.03% in EPS and 6.96% in revenues [3] Valuation Metrics - The stock trades at a valuation of 33.9X current fiscal year EPS estimates, which is above the peer industry average of 23.9X, and at 34.5X on a trailing cash flow basis compared to the peer group's average of 12.2X [7] - The PEG ratio stands at 2.55, suggesting that the company is not positioned among the top value stocks [7] Zacks Rank and Style Scores - Trane Technologies holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] - The company has a Value Score of D, while its Growth and Momentum Scores are both B, resulting in a combined VGM Score of B [6] Industry Context - The Technology Services industry is performing well, ranking in the top 24% of all industries, indicating favorable conditions for both Trane Technologies and its peer, CoreCard Corporation [11] - CoreCard Corporation, a peer, has also shown strong performance with a Zacks Rank of 2 (Buy) and has reported a significant earnings beat of 114.29% in the last quarter [10]

Group 1 - Trane Technologies (TT) closed at $359.67, with a +1.51% change, outperforming the S&P 500's daily gain of 0.75% [1] - The stock has increased by 2.48% over the past month, underperforming the Business Services sector's gain of 5.97% and the S&P 500's gain of 4.03% [1] Group 2 - The upcoming EPS for Trane Technologies is projected at $3.22, indicating a 15.41% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $5.29 billion, reflecting an 8.42% increase from the previous year [2] Group 3 - For the full year, analysts expect earnings of $10.87 per share and revenue of $19.54 billion, representing changes of +20.24% and +10.55% respectively from last year [3] Group 4 - Recent revisions to analyst forecasts for Trane Technologies are important as they reflect short-term business trends, with positive revisions indicating analyst optimism [4] Group 5 - Estimate revisions are correlated with near-term share price momentum, and investors can utilize the Zacks Rank for actionable insights [5] Group 6 - Trane Technologies currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 32.58, indicating a premium compared to the industry's Forward P/E of 23.01 [6] Group 7 - The company has a PEG ratio of 2.45, higher than the Technology Services industry's average PEG ratio of 1.45 [7] - The Technology Services industry is part of the Business Services sector, which holds a Zacks Industry Rank of 77, placing it in the top 31% of all industries [7]

Trane Technologies (TT) has performed well over the past year and has the potential to sustain momentum in the near term. Hence, if you have not taken advantage of the share price appreciation yet, it is time for you to add the stock to your portfolio. What Makes TT an Attractive Pick? An Outperformer: A glimpse at the company's price trend reveals that the stock has had an impressive run over the year. Shares of Trane Technologies have surged 67.9% compared with the 45.3% rally of the industry it belongs t ...

Core Viewpoint - Trane Technologies has demonstrated strong performance with a 14% increase in stock price since March 2024, outperforming the S&P 500, driven by robust commercial HVAC growth and a favorable outlook for the residential business as interest rates are expected to decline in FY25 [1][6]. Backlog and Growth - The company achieved a record backlog of $7.5 billion, reflecting a 19% organic growth during the quarter, which is expected to support growth through FY24 and FY25 [2][13]. - Trane Technologies has invested in high-growth verticals such as data centers and semiconductor fabs, leading to growth across all 14 tracked verticals in the commercial HVAC market [3]. Revenue and Booking Growth - The applied HVAC business has seen a 90% growth over three years, with management estimating it can generate 8-10 times more revenue over its lifetime [3]. - New product launches, including a residential HVAC and heat pump portfolio, are anticipated to drive demand and improve gross margins [3]. Residential Business Performance - Despite challenges in the U.S. residential market due to high interest rates, Trane Technologies expects mid-single-digit revenue growth for the full year, benefiting from moderating channel inventories and a strong start to the cooling season [5][4]. Financial Outlook - The company raised its FY24 revenue and EPS guidance, projecting organic revenue growth of approximately 10% and adjusted EPS of $10.80 to $10.50, reflecting strong first-half performance [7]. - Trane Technologies anticipates a 12% annual revenue growth rate, with a 40 basis points annual margin expansion driven by pricing increases and operational efficiencies [8]. Market Position and Projections - The U.S. HVAC market is projected to grow at a CAGR of 7.4% from 2024 to 2030, with Trane Technologies expected to outpace this growth due to its applied technology and pricing power [7]. - The company plans to allocate 4% of total revenue towards acquisitions, contributing an additional 2% to overall topline growth [8]. Valuation - A DCF model estimates a one-year target price of $380 per share, based on a cost of equity of 12% and projected free cash flow from equity [10].

It has been about a month since the last earnings report for Trane Technologies (TT) . Shares have added about 6.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Trane Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Trane Technologies Q2 Earnings B ...

Core Viewpoint - Trane Technologies (TT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - For the fiscal year ending December 2024, Trane Technologies is expected to earn $10.82 per share, reflecting a 19.7% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Trane Technologies has risen by 3.4%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [9][10].

Financial Performance - Organic bookings increased by 19% and organic revenues increased by 13%[7] - Adjusted operating margins increased by 140 basis points and adjusted EPS increased by 23%[7] - The company is raising its 2024 organic revenue growth expectation to approximately +10%, up from the previous guidance of +8% to +9%[7] - The company is raising its 2024 adjusted EPS guidance to approximately $1080, up approximately +20% from the previous guidance of $1040 to $1050[7] - Q2 net revenue +13% organic to $4705 million[11] - Q2 Adj EBITDA margin +140 bps to 197%[11] - Q2 Adj Operating Margin +140 bps to 194%[11] - Q2 Adj Continuing EPS +23% to $268[11] Bookings and Backlog - Record high enterprise bookings of $53 billion, up approximately $300 million from the prior record high set in Q1 2024[7] - Q2 ending backlog of $75 billion, up 8% from $69 billion at the end of 2023[7] Segment Performance - Americas CHVAC bookings increased by more than 20% year-over-year[7] - Americas equipment and services revenues increased by >30% and + high-teens, respectively[9] - EMEA CHVAC bookings increased by +20%[9] - ACT lowered their 2024 transport market forecast to down ~15% vs down ~10% prior[20] Capital Allocation - The company expects to deploy approximately $25 billion in capital in 2024[38] - Q2 dividends totaled $190 million, and year-to-date dividends totaled $379 million[38] - Year-to-date share repurchases totaled $650 million, with approximately $18 billion remaining authorized[38]

Trane Technologies plc (TT) reported better-than-expected second-quarter 2024 results. Adjusted EPS of $3.3 surpassed the Zacks Consensus Estimate by 7.1% and increased 23.1% year over year. Revenues of $5.3 billion beat the consensus mark by 3.8% and increased 13% year over year on a reported basis, as well as organically. Bookings were up 19% year over year on a reported basis, as well as organically. Revenues and Bookings The Americas segment's revenues of $4.3 billion were higher than our estimate of $4 ...