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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 to achieve cost savings.
The company’s earnings for 2023 and 2024 are expected to improve 14.4% and 8.4%, respectively, year over year. Revenues for 2023 and 2024 are anticipated to improve 8.7% and 4.3%, respectively.
Factors That Bode Well
Trane Technologies remains focused on improving its business operating system and innovation through business transformation initiatives and investments. The company reduced costs by roughly $240 million in 2022 and targets an additional $60 million reduction by 2023 for a total of $300 million under its current transformation initiatives.
The recent acquisition of MTA is expected to strengthen the company’s ability to offer industrial process cooling solutions and services to food and beverage, pharmaceutical, and automotive industries in key markets. Another acquisition, AL-KO Air Technology expanded its Commercial HVAC product and services portfolios in Europe and Asia. The buyout added high-performing air handling, extraction and ventilation solutions to these portfolios.
Trane Technologies has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2022, 2021, 2020 and 2019, the company repurchased shares worth $1.2 billion, $1.10 billion, $250 million and $750.1 million, respectively. It paid $620 million, $561.1 million, $507.3 million and $510.1 million in dividends in 2021, 2020 and 2019, respectively. Such moves indicate its commitment to boosting shareholders’ value and underlining its confidence in its business.
Some Risks
Trane Technologies’ current ratio at the end of the first quarter of 2023 was pegged at 1.26, lower than the current ratio of 1.32 reported at the end of the prior-year quarter. A decline in the 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) in Your Portfolio
Trane Technologies plc (TT - Free Report) is currently focusing on business transformation to achieve cost savings.
The company’s earnings for 2023 and 2024 are expected to improve 14.4% and 8.4%, respectively, year over year. Revenues for 2023 and 2024 are anticipated to improve 8.7% and 4.3%, respectively.
Factors That Bode Well
Trane Technologies remains focused on improving its business operating system and innovation through business transformation initiatives and investments. The company reduced costs by roughly $240 million in 2022 and targets an additional $60 million reduction by 2023 for a total of $300 million under its current transformation initiatives.
The recent acquisition of MTA is expected to strengthen the company’s ability to offer industrial process cooling solutions and services to food and beverage, pharmaceutical, and automotive industries in key markets. Another acquisition, AL-KO Air Technology expanded its Commercial HVAC product and services portfolios in Europe and Asia. The buyout added high-performing air handling, extraction and ventilation solutions to these portfolios.
Trane Technologies plc Revenue (TTM)
Trane Technologies plc revenue-ttm | Trane Technologies plc Quote
Trane Technologies has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2022, 2021, 2020 and 2019, the company repurchased shares worth $1.2 billion, $1.10 billion, $250 million and $750.1 million, respectively. It paid $620 million, $561.1 million, $507.3 million and $510.1 million in dividends in 2021, 2020 and 2019, respectively. Such moves indicate its commitment to boosting shareholders’ value and underlining its confidence in its business.
Some Risks
Trane Technologies’ current ratio at the end of the first quarter of 2023 was pegged at 1.26, lower than the current ratio of 1.32 reported at the end of the prior-year quarter. A decline in the 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
TT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Booz Allen Hamilton (BAH - Free Report) and Omnicom (OMC - Free Report) .
Booz Allen has an expected long-term earnings per share (three to five years) growth rate of 8.9%.
BAH has a trailing four-quarter earnings surprise of 8.7%, on average. BAH carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicom has an expected earnings growth rate of 6.5% for the current year. OMC has a trailing four-quarter earnings surprise of 9.1%, on average.
OMChas a long-term earnings growth of 4.7% and carries a Zacks Rank #2.