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Reasons to Retain Trane Technologies' (TT) Stock For Now
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Trane Technologies plc (TT - Free Report) currently benefits from shareholder-friendly measures, business transformation and investments.
The company has an expected long-term (three to five years) earnings per share growth rate of 11.3%. The company’s earnings for 2022 and 2023 are expected to improve 15.9% and 11%, respectively, year over year.
Factors That Auger Well
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 to boosting shareholders’ value and underline its confidence in its business.
Trane 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, as well as its operating efficiencies, in order to achieve sustained improvement in earnings and cash flow.
The company remains focused on improving its business operating system and innovation through business transformation initiatives and investments. Intending to lower its cost structure, Trane targets $300 million of annualized savings by 2023.
Some Risks
Trane’s current ratio at the end of first-quarter 2022 was pegged at 1.31, lower than the current ratio of 1.36 reported at fourth-quarter 2021 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.
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Reasons to Retain Trane Technologies' (TT) Stock For Now
Trane Technologies plc (TT - Free Report) currently benefits from shareholder-friendly measures, business transformation and investments.
The company has an expected long-term (three to five years) earnings per share growth rate of 11.3%. The company’s earnings for 2022 and 2023 are expected to improve 15.9% and 11%, respectively, year over year.
Factors That Auger Well
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 to boosting shareholders’ value and underline its confidence in its business.
Trane 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, as well as 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 remains focused on improving its business operating system and innovation through business transformation initiatives and investments. Intending to lower its cost structure, Trane targets $300 million of annualized savings by 2023.
Some Risks
Trane’s current ratio at the end of first-quarter 2022 was pegged at 1.31, lower than the current ratio of 1.36 reported at fourth-quarter 2021 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). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and CRA International (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Cross Country Healthcare sports a Zacks Rank of 1 at present. CCRN has a long-term earnings growth expectation of 6.9%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CRA International carries a Zacks Rank #2 (Buy), currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.