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Reasons Why You Should Bet on Trane Technologies (TT) Now

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Trane Technologies plc (TT - Free Report) is a technology services provider that has performed extremely well over the past year 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 Technologies 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 year. Shares of Trane Technologies have returned 26.5% against the 6% decline of the industry it belongs to.

Solid Rank: Trane Technologies currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Nine estimates for 2023 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 2023 earnings has climbed 4.5%.

Positive Earnings Surprise History: Trane Technologies has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering an average beat of 7.3%.

Strong Growth Prospects: The Zacks Consensus Estimate for the company's 2023 earnings of $8.82 indicates year-over-year growth of 19.8%. Moreover, earnings are expected to register 9.9% growth in 2024. The stock’s long-term expected earnings per share growth rate is 12.9%.

Growth Factors: Trane Technologies remains focused on improving its business operating system and innovation through business transformation initiatives and investments. To lower its cost structure, it targets $300 million in annualized savings by 2023.

The company has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2022, 2021, 2020 and 2019, it repurchased shares worth $1.2 billion, $1.1 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 2022, 2021, 2020 and 2019, respectively. Such moves indicate its commitment to boosting shareholders’ value, underlining its confidence in its business.

Other Stocks to Consider

Here are a few other top-ranked stocks from the broader Business Service sector that are worth considering.

DocuSign (DOCU - Free Report) beat the Zacks Consensus Estimate in all the four trailing quarters, with an earnings surprise of 27.1%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Accenture (ACN - Free Report) currently carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $64.18 billion, 4.2% higher than the year-ago reported figure. The consensus estimate for ACN’s bottom line is pegged at $11.59, indicating 4.2% year-over-year growth. It beat the Zacks Consensus Estimate in all the four trailing quarters, with an average of 5.7%.

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