Trane Technologies plc (TT - Free Report) is currently benefiting from its initiatives to improve its revenues and operating system. The company’s earnings for 2022 and 2023 are expected to improve 15.8% and 10.8%, respectively, year over year.
Factors That Bode Well
Trane’s top line remains in good shape, driven by strength across all three segments, namely, Americas, EMEA and Asia Pacific, which reported a respective year-over-year growth of 15%, 4% and 3% on a reported basis and 14%, 5% and 4% on an organic basis, in the fourth quarter of 2021. The company remains focused on increasing its revenue stream from parts, services, controls, used equipment and rentals.
Trane’s bottom line is benefiting from its improving business operating system and prudent investments. Adjusted EBITDA and adjusted operating income increased 14% and 13% year over year, respectively, in the fourth quarter of 2021. Adjusted EBITDA margin and adjusted operating margin increased a respective 30 basis points and 10 basis points.
Trane Technologies has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, the company had repurchased shares worth $1.10 billion, $250 million and $750.1 million, respectively. It paid $561.1 million, $507.3 million and $510.1 million in dividends during 2021, 2020 and 2019, respectively. Such moves indicate Trane’s commitment toward boosting shareholders’ value and underline its confidence in its business.
Some Risks
Trane Technologies has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $2.2 billion compared with the long-term debt level of $4.5 billion.
Zacks Rank and Stocks to Consider
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , Accenture (ACN - Free Report) and Clean Harbors (CLH - Free Report) .
Cross Country Healthcare sports a Zacks Rank #1. The company has a long-term earnings growth of 6.6%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 58% in the past year.
Accenture carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of 19.8% for the current year. It delivered a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 20.4% in the past year. The company has a long-term earnings growth of 10%.
Clean Harbors carries a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.
CLH’s shares have jumped 15.7% in the past year.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Free: See Our Top Stock and 4 Runners Up >>
Trane Technologies plc (TT - Free Report) is currently benefiting from its initiatives to improve its revenues and operating system. The company’s earnings for 2022 and 2023 are expected to improve 15.8% and 10.8%, respectively, year over year.
Factors That Bode Well
Trane’s top line remains in good shape, driven by strength across all three segments, namely, Americas, EMEA and Asia Pacific, which reported a respective year-over-year growth of 15%, 4% and 3% on a reported basis and 14%, 5% and 4% on an organic basis, in the fourth quarter of 2021. The company remains focused on increasing its revenue stream from parts, services, controls, used equipment and rentals.
Trane’s bottom line is benefiting from its improving business operating system and prudent investments. Adjusted EBITDA and adjusted operating income increased 14% and 13% year over year, respectively, in the fourth quarter of 2021. Adjusted EBITDA margin and adjusted operating margin increased a respective 30 basis points and 10 basis points.
Trane Technologies has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, the company had repurchased shares worth $1.10 billion, $250 million and $750.1 million, respectively. It paid $561.1 million, $507.3 million and $510.1 million in dividends during 2021, 2020 and 2019, respectively. Such moves indicate Trane’s commitment toward boosting shareholders’ value and underline its confidence in its business.
Some Risks
Trane Technologies has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $2.2 billion compared with the long-term debt level of $4.5 billion.
Zacks Rank and Stocks to Consider
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , Accenture (ACN - Free Report) and Clean Harbors (CLH - Free Report) .
Cross Country Healthcare sports a Zacks Rank #1. The company has a long-term earnings growth of 6.6%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 58% in the past year.
Accenture carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of 19.8% for the current year. It delivered a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 20.4% in the past year. The company has a long-term earnings growth of 10%.
Clean Harbors carries a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.
CLH’s shares have jumped 15.7% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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