Trane Technologies plc ( TT Quick Quote TT - Free Report) is a technology services provider that has performed extremely well over the past six months and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio. What Makes Trane an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past six months. Shares of Trane Technologies have returned 36.4%, against the 15.2% decline of the
industry it belongs to. Solid Rank: Trane Technologies carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here. Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Eight estimates for 2022 have moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 earnings has climbed nearly 1%. Positive Earnings Surprise History: Trane has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering an average beat of 6.4%. Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2022 earnings of $7.16 reflects year-over-year growth of 17.6%. Moreover, earnings are expected to register 9.2% growth in 2023. The stock’s long-term expected earnings per share growth rate is 11.8%. Growth Factors: The company remains focused on improving its business operating system and innovation through business transformation initiatives and investments. To lower its cost structure, Trane Technologies targets $300 million in annualized savings by 2023.
Trane Technologies has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, the company 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.
Other Stocks to Consider
Some other top-ranked stocks worth considering in the same sector areBooz Allen Hamilton (
BAH Quick Quote BAH - Free Report) , Paychex ( PAYX Quick Quote PAYX - Free Report) and Cross Country Healthcare ( CCRN Quick Quote CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
Paychex presently carries a Zacks Rank #2. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6% on average.
Cross Country Healthcare currently carries a Zacks Rank #2. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1% on average.