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

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In the latest market close, Trane Technologies (TT - Free Report) reached $348.65, with a +1.59% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.

Prior to today's trading, shares of the manufacturer had lost 3.46% over the past month. This has was narrower than the Construction sector's loss of 7.84% and the S&P 500's loss of 4.13% in that time.

The investment community will be paying close attention to the earnings performance of Trane Technologies in its upcoming release. The company is expected to report EPS of $2.19, up 12.89% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.46 billion, indicating a 5.7% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.79 per share and revenue of $21.31 billion. These totals would mark changes of +13.99% and +7.42%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% lower. Right now, Trane Technologies possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Trane Technologies is currently exchanging hands at a Forward P/E ratio of 26.83. This signifies no noticeable deviation in comparison to the average Forward P/E of 26.83 for its industry.

It is also worth noting that TT currently has a PEG ratio of 2.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Air Conditioner and Heating stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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