Trane Technologies(US:TT) ZACKSยท2024-10-15 16:55Core 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].