In its upcoming report, Trane Technologies (TT) is predicted by Wall Street analysts to post quarterly earnings of $3.23 per share, reflecting an increase of 15.8% compared to the same period last year. Revenues are forecasted to be $5.31 billion, representing a year-over-year increase of 8.8%. The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ini ...

Core Viewpoint - Trane Technologies plc (TT) has shown exceptional performance over the past year and is expected to maintain this momentum, making it a compelling addition to investment portfolios [1]. Performance Metrics - The stock has returned 94.6% over the past year, outperforming the industry growth of 57.4% and the Zacks S&P 500 composite rise of 32.4% [2]. - TT currently holds a Zacks Rank of 2 (Buy), indicating strong investment potential [2]. Earnings Estimates - In the last 60 days, three earnings estimates for 2024 have been revised upward, with no downward revisions, reflecting analysts' confidence [3]. - The Zacks Consensus Estimate for 2024 earnings has increased by 1% [3]. - TT has consistently outperformed earnings estimates, achieving an average earnings surprise of 8.1% over the last four quarters [3]. Revenue and Earnings Growth - The Zacks Consensus Estimate for 2024 revenues is projected at $19.6 billion, representing a year-over-year growth of 10.6% [4]. - The estimated earnings for 2024 are $10.9 per share, indicating a year-over-year increase of 20.4% [4]. Sustainability Initiatives - The company is committed to reducing embodied carbon by 40% by 2030, showcasing its leadership in sustainability and climate innovation [5]. - Trane Technologies is focusing on sourcing low-carbon materials and promoting circular design principles, reinforcing its sustainability commitments [5]. Shareholder Returns - Trane Technologies has a long history of paying dividends, with $683.7 million paid in 2023, an increase from $620.2 million in 2022 and $561.1 million in 2021 [6]. - A quarterly dividend of 84 cents per share has been declared for Q4 2024, payable on December 31, 2024 [6]. Backlog and Future Growth - In Q2 2024, TT reported a backlog of $7.5 billion, which is a 19% organic increase from the previous quarter, supporting growth through 2024 and 2025 [7].

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Za ...

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]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

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 ...