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Trane Technologies (TT) Gains 28% in a Year: Here's How
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Trane Technologies plc (TT - Free Report) has had an impressive run over the past year. TT shares have appreciated 28.1%, outperforming the 8.2% rally of the Zacks S&P 500 composite.
What’s Driving the Stock
Trane Technologies remains focused on improving its business operating system and innovation through business transformation initiatives and investments. To lower its cost structure, it targets $300 million in annualized savings by 2023.
The company reported better-than-expected earnings and revenue performance in the past four quarters. The top line benefited from a strong demand situation, especially in commercial HVAC globally. The bottom line was aided by strong positive price realization, volume growth and productivity. We expect Trane Technologies’ revenues to grow 9.7% and adjusted EPS to increase 19.8% year over year in 2023.
The company has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2022, 2021, 2020 and 2019, it repurchased shares worth $1.2 billion, $1.1 billion, $250 million and $750.1 million, respectively. It paid $620 million, $561.1 million, $507.3 million and $510.1 million in dividends in 2022, 2021, 2020 and 2019, respectively. Such moves indicate Trane Technologies’ commitment to boosting shareholders’ value, underlining its confidence in its business.
The company is in pursuit of enhancing existing product effectiveness, introducing new products and improving ease of use. In 2022, Trane Technologies spent $211.2 million on research and development. In 2021 and 2020, the amount spent on research and development was $193.5 million and $165 million, respectively.
Zacks Rank and Other Stocks to Consider
TT currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Business Services sector can also consider the following stocks:
Earnings for 2023 are expected to grow 39% while revenues are anticipated to gain 14.8% from the year-ago figure. APTV had an impressive earnings surprise of 13.35% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. APTV carries a VGM Score of A.
Clean Harbors (CLH - Free Report) has a Zacks Rank of 2. Earnings for 2023 are expected to be in line with the year-ago quarter, while revenues are anticipated to go up 5.3% year over year. CLH had an impressive earnings surprise of 13% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. CLH carries a VGM Score of B.
Verisk Analytics (VRSK - Free Report) currently carries a Zacks Rank of 2. Earnings for 2023 are expected to grow 14% while revenues are anticipated to fall 8.3% from the year-ago figure. VRSK had an impressive earnings surprise of 9.85% in the past four quarters, having beaten the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance.
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Trane Technologies (TT) Gains 28% in a Year: Here's How
Trane Technologies plc (TT - Free Report) has had an impressive run over the past year. TT shares have appreciated 28.1%, outperforming the 8.2% rally of the Zacks S&P 500 composite.
What’s Driving the Stock
Trane Technologies remains focused on improving its business operating system and innovation through business transformation initiatives and investments. To lower its cost structure, it targets $300 million in annualized savings by 2023.
The company reported better-than-expected earnings and revenue performance in the past four quarters. The top line benefited from a strong demand situation, especially in commercial HVAC globally. The bottom line was aided by strong positive price realization, volume growth and productivity. We expect Trane Technologies’ revenues to grow 9.7% and adjusted EPS to increase 19.8% year over year in 2023.
Trane Technologies plc Price
Trane Technologies plc price | Trane Technologies plc Quote
The company has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2022, 2021, 2020 and 2019, it repurchased shares worth $1.2 billion, $1.1 billion, $250 million and $750.1 million, respectively. It paid $620 million, $561.1 million, $507.3 million and $510.1 million in dividends in 2022, 2021, 2020 and 2019, respectively. Such moves indicate Trane Technologies’ commitment to boosting shareholders’ value, underlining its confidence in its business.
The company is in pursuit of enhancing existing product effectiveness, introducing new products and improving ease of use. In 2022, Trane Technologies spent $211.2 million on research and development. In 2021 and 2020, the amount spent on research and development was $193.5 million and $165 million, respectively.
Zacks Rank and Other Stocks to Consider
TT currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Business Services sector can also consider the following stocks:
Aptiv (APTV - Free Report) carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings for 2023 are expected to grow 39% while revenues are anticipated to gain 14.8% from the year-ago figure. APTV had an impressive earnings surprise of 13.35% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. APTV carries a VGM Score of A.
Clean Harbors (CLH - Free Report) has a Zacks Rank of 2. Earnings for 2023 are expected to be in line with the year-ago quarter, while revenues are anticipated to go up 5.3% year over year. CLH had an impressive earnings surprise of 13% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. CLH carries a VGM Score of B.
Verisk Analytics (VRSK - Free Report) currently carries a Zacks Rank of 2. Earnings for 2023 are expected to grow 14% while revenues are anticipated to fall 8.3% from the year-ago figure. VRSK had an impressive earnings surprise of 9.85% in the past four quarters, having beaten the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance.