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Here's Why You Should Retain Trane Technologies (TT) Stock

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Trane Technologies plc (TT - Free Report) currently benefits from enhancing the quality of its products and services as well as investor-friendly steps.

TT earnings are anticipated to grow 16.4% and 9.5% in 2022 and 2023, respectively. Shares of Trane Technologies have rallied 10.9% in the past year against the 18.3% fall of the industry it belongs to.

Zacks Investment Research
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Factors That Augur Well

Trane Technologies continues pursuing its broader growth objectives by focusing on increasing revenue streams from parts, services, controls, used equipment and rentals. Also, TT deeply concentrates on bettering the quality of its products and services, and its operating efficiencies to achieve a sustained improvement in earnings and cash flow.

Trane Technologies consistently rewards its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, TT had repurchased shares worth $1.10 billion, $250 million and $750.1 million, respectively. TT paid out $561.1 million, $507.3 million and $510.1 million of dividends during 2021, 2020 and 2019, respectively. Such moves indicate Trane Technologies’ commitment to boosting its shareholder value and instilling confidence in its business.

A Key Risk

Trane Technologies’ current ratio at the end of second-quarter 2022 was pegged at 1.09, lower than the current ratio of 1.31 reported at the end of first-quarter 2022 and the prior-year quarter’s 1.58. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.  

Zacks Rank and Stocks to Consider

Trane Technologies 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, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank #1 at present. CAR has an earnings growth rate of 108.4% for 2022.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.  

Genpact carries a Zacks Rank of 2 at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.  

CRA International sports a Zacks Rank #1, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
 

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