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Trane Technologies (TT) Rises 18.2% in 6 Months: Here's How
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Trane Technologies (TT - Free Report) gained 18.2% in the past six months compared with its industry’s growth of 16.9% in the same time frame. The company has beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 7.3%.
Factors Boding Well
Trane Technologies is steadfast in its commitment to enhance its business operations and foster innovation via business transformation projects and investments. In order to streamline its cost structure, the company aims to achieve annualized savings of $300 million by 2023.
The company has consistently demonstrated its commitment to enhancing shareholder value through a combination of dividend payouts and share repurchases. In 2022, 2021, 2020, and 2019, it repurchased shares valued at $1.2 billion, $1.1 billion, $250 million, and $750.1 million, respectively. Additionally, it distributed dividends amounting to $620 million, $561.1 million, $507.3 million, and $510.1 million in 2022, 2021, 2020, and 2019, respectively. These strategic actions underscore Trane Technologies' confidence in its business and its ongoing dedication to enhancing shareholder value.
The company is wholeheartedly committed to improving its product effectiveness, introducing novel offerings and enhancing user-friendliness. In 2022, Trane Technologies set aside $211.2 million for research and development endeavors, thus reinforcing its dedication to innovation. This substantial investment in research and development was also significant at $193.5 million in 2021 and $165 million in 2020, thus showcasing the company's enduring commitment to advancing technology and ensuring product excellence.
Trane Technologies is benefiting from strategic partnerships. Recently, BrainBox AI, a leader in autonomous decarbonization for buildings, announced a strategic collaboration with Trane. This collaboration aims to combine Trane's cloud-based Tracer SC+ building automation system with BrainBox AI's autonomous decarbonization AI technology, thus helping Trane customers reduce greenhouse gas emissions and save on operational costs in a unique way.
Factors Against
Trane Technologies’ current ratio at the end of second-quarter 2023 was pegged at 1.19, which is lower than the current ratio of 1.26 reported at the end of the year-ago quarter. The decreasing current ratio does not bode well.
Zacks Rank and Other Stocks to Consider
TT currently carries a Zacks Rank #2 (Buy).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimates for fiscal 2024 revenues and earnings suggest growth of 7.2% and 8.8%, respectively.
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Trane Technologies (TT) Rises 18.2% in 6 Months: Here's How
Trane Technologies (TT - Free Report) gained 18.2% in the past six months compared with its industry’s growth of 16.9% in the same time frame. The company has beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 7.3%.
Factors Boding Well
Trane Technologies is steadfast in its commitment to enhance its business operations and foster innovation via business transformation projects and investments. In order to streamline its cost structure, the company aims to achieve annualized savings of $300 million by 2023.
Trane Technologies plc Price and EPS Surprise
Trane Technologies plc price-eps-surprise | Trane Technologies plc Quote
The company has consistently demonstrated its commitment to enhancing shareholder value through a combination of dividend payouts and share repurchases. In 2022, 2021, 2020, and 2019, it repurchased shares valued at $1.2 billion, $1.1 billion, $250 million, and $750.1 million, respectively. Additionally, it distributed dividends amounting to $620 million, $561.1 million, $507.3 million, and $510.1 million in 2022, 2021, 2020, and 2019, respectively. These strategic actions underscore Trane Technologies' confidence in its business and its ongoing dedication to enhancing shareholder value.
The company is wholeheartedly committed to improving its product effectiveness, introducing novel offerings and enhancing user-friendliness. In 2022, Trane Technologies set aside $211.2 million for research and development endeavors, thus reinforcing its dedication to innovation. This substantial investment in research and development was also significant at $193.5 million in 2021 and $165 million in 2020, thus showcasing the company's enduring commitment to advancing technology and ensuring product excellence.
Trane Technologies is benefiting from strategic partnerships. Recently, BrainBox AI, a leader in autonomous decarbonization for buildings, announced a strategic collaboration with Trane. This collaboration aims to combine Trane's cloud-based Tracer SC+ building automation system with BrainBox AI's autonomous decarbonization AI technology, thus helping Trane customers reduce greenhouse gas emissions and save on operational costs in a unique way.
Factors Against
Trane Technologies’ current ratio at the end of second-quarter 2023 was pegged at 1.19, which is lower than the current ratio of 1.26 reported at the end of the year-ago quarter. The decreasing current ratio does not bode well.
Zacks Rank and Other Stocks to Consider
TT currently carries a Zacks Rank #2 (Buy).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimates for fiscal 2024 revenues and earnings suggest growth of 7.2% and 8.8%, respectively.