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Reasons to Retain Trane Technologies (TT) in Your Portfolio
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Trane Technologies plc (TT - Free Report) is currently focusing on business transformation with a view to achieve cost savings.
The company’s earnings for 2022 and 2023 are expected to improve 15.6% and 10.5%, respectively, year over year. Revenues for 2022 and 2023 are anticipated to improve 7.9% and 4.4%, respectively.
Factors That Bode Well
Trane Technologies continues to pursue its broader growth objectives by focusing on steps to increase revenue stream from parts, services, controls, used equipment and rentals. Also, the company remains focused on improving the quality of its products and services, and its operating efficiencies in order to achieve sustained improvement in earnings and cash flow.
The company is also focused on improving its business operating system and innovation through business transformation initiatives and investments. With a view to lower its cost structure, Trane targets $100 million in annualized cost savings for 2021 and $300 million annualized savings by 2023.
Trane 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 underlining its confidence in its business.
Some Risks
Trane’s current ratio at the end of fourth-quarter 2021 was pegged at 1.36, lower than the current ratio of 1.62 reported at third-quarter end and 1.59 at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.
Zacks Rank and Stocks to Consider
Trane currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
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Reasons to Retain Trane Technologies (TT) in Your Portfolio
Trane Technologies plc (TT - Free Report) is currently focusing on business transformation with a view to achieve cost savings.
The company’s earnings for 2022 and 2023 are expected to improve 15.6% and 10.5%, respectively, year over year. Revenues for 2022 and 2023 are anticipated to improve 7.9% and 4.4%, respectively.
Factors That Bode Well
Trane Technologies continues to pursue its broader growth objectives by focusing on steps to increase revenue stream from parts, services, controls, used equipment and rentals. Also, the company remains focused on improving the quality of its products and services, and its operating efficiencies in order to achieve sustained improvement in earnings and cash flow.
Trane Technologies plc Revenue (TTM)
Trane Technologies plc revenue-ttm | Trane Technologies plc Quote
The company is also focused on improving its business operating system and innovation through business transformation initiatives and investments. With a view to lower its cost structure, Trane targets $100 million in annualized cost savings for 2021 and $300 million annualized savings by 2023.
Trane 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 underlining its confidence in its business.
Some Risks
Trane’s current ratio at the end of fourth-quarter 2021 was pegged at 1.36, lower than the current ratio of 1.62 reported at third-quarter end and 1.59 at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.
Zacks Rank and Stocks to Consider
Trane currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 66% in the past year. CCRN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
FactSet shares have surged 36.7% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2 (Buy).