Trane Technologies(US:TT) ZACKSยท2024-09-17 14:15Company 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]