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Reasons to Retain Trane Technologies (TT) for the Time Being
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Trane Technologies (TT - Free Report) has maintained its commitment to enhancing the quality of its products and services, as well as operational efficiencies, to achieve continuous enhancements in earnings and cash flow. The company prioritizes the improvement of its business operating system and fosters innovation through strategic business transformation initiatives and judicious investments.
Factors in Favor
Trane Technologies remains resolute in its commitment to optimizing business operations and driving innovation through various business transformation initiatives and investments. With a focus on streamlining its cost structure, the company aims to achieve annualized savings of $300 million by 2023.
Consistently prioritizing the enhancement of shareholder value, Trane Technologies employs a combination of dividend payouts and share repurchases. Over the past four years (2019-2022), the company repurchased shares valued at $750.1 million, $250 million, $1.1 billion and $1.2 billion, respectively. Additionally, it distributed dividends totaling $510.1 million, $507.3 million, $561.1 million and $620 million in 2019, 2020, 2021 and 2022, demonstrating its confidence in the business and dedication to shareholder value.
Trane Technologies is fully committed to improving product effectiveness, introducing innovative offerings and enhancing user-friendliness. In 2022, the company allocated $211.2 million for research and development, reinforcing its dedication to innovation. Notably, substantial investments in research and development were made in 2021 ($193.5 million) and 2020 ($165 million), highlighting the company's enduring commitment to advancing technology and ensuring product excellence.
Factors Against
Approximately 28% of Trane Technologies' revenues come from countries beyond the United States, thus exposing the it to foreign currency risk. Consequently, the reported results of the company are influenced by fluctuations in foreign currencies. In 2022, there was a Foreign Currency Exchange loss of $17.9 million, marking a 67% increase from the loss experienced in 2021.
TT currently holds a Zacks Rank #3 (Hold).
Stocks to Consider
Here are a few better-ranked stocks from the Business Services sector:
Gartner (IT - Free Report) :TheZacks Consensus Estimate of Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure while earnings are expected to decline 1.9%. The company has beaten the consensus estimate in all four quarters, with an average surprise of 34.4%.
Broadridge Financial Solutions (BR - Free Report) :The Zacks Consensus Estimate of Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure while earnings are expected to grow 10.1%. The company has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR holds a Zacks Rank #2 (Buy).
DocuSign(DOCU - Free Report) : The Zacks Consensus Estimate of DocuSign’s 2023 revenues indicates 9.2% growth from the year-ago figure while earnings are expected to grow 39.9%. The company has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
DOCU holds a Zacks Rank of 2.
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Reasons to Retain Trane Technologies (TT) for the Time Being
Trane Technologies (TT - Free Report) has maintained its commitment to enhancing the quality of its products and services, as well as operational efficiencies, to achieve continuous enhancements in earnings and cash flow. The company prioritizes the improvement of its business operating system and fosters innovation through strategic business transformation initiatives and judicious investments.
Factors in Favor
Trane Technologies remains resolute in its commitment to optimizing business operations and driving innovation through various business transformation initiatives and investments. With a focus on streamlining its cost structure, the company aims to achieve annualized savings of $300 million by 2023.
Trane Technologies plc Price
Trane Technologies plc price | Trane Technologies plc Quote
Consistently prioritizing the enhancement of shareholder value, Trane Technologies employs a combination of dividend payouts and share repurchases. Over the past four years (2019-2022), the company repurchased shares valued at $750.1 million, $250 million, $1.1 billion and $1.2 billion, respectively. Additionally, it distributed dividends totaling $510.1 million, $507.3 million, $561.1 million and $620 million in 2019, 2020, 2021 and 2022, demonstrating its confidence in the business and dedication to shareholder value.
Trane Technologies is fully committed to improving product effectiveness, introducing innovative offerings and enhancing user-friendliness. In 2022, the company allocated $211.2 million for research and development, reinforcing its dedication to innovation. Notably, substantial investments in research and development were made in 2021 ($193.5 million) and 2020 ($165 million), highlighting the company's enduring commitment to advancing technology and ensuring product excellence.
Factors Against
Approximately 28% of Trane Technologies' revenues come from countries beyond the United States, thus exposing the it to foreign currency risk. Consequently, the reported results of the company are influenced by fluctuations in foreign currencies. In 2022, there was a Foreign Currency Exchange loss of $17.9 million, marking a 67% increase from the loss experienced in 2021.
TT currently holds a Zacks Rank #3 (Hold).
Stocks to Consider
Here are a few better-ranked stocks from the Business Services sector:
Gartner (IT - Free Report) :TheZacks Consensus Estimate of Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure while earnings are expected to decline 1.9%. The company has beaten the consensus estimate in all four quarters, with an average surprise of 34.4%.
IT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions (BR - Free Report) :The Zacks Consensus Estimate of Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure while earnings are expected to grow 10.1%. The company has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR holds a Zacks Rank #2 (Buy).
DocuSign(DOCU - Free Report) : The Zacks Consensus Estimate of DocuSign’s 2023 revenues indicates 9.2% growth from the year-ago figure while earnings are expected to grow 39.9%. The company has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
DOCU holds a Zacks Rank of 2.