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Trane Technologies Stock Rises 21% in a Year: Here's How

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Trane Technologies plc (TT - Free Report) stock has had an impressive run over the past year. TT shares have appreciated 21%, significantly outperforming the 13% growth of the industry.

What’s Driving TT Stock?

Trane Technologies’ top-line benefits from a strong Commercial HVAC market with revenues growing 10.2% in the fourth quarter of 2024. Increasing demand for its innovative customer-centric solutions, energy-efficient products and decarbonization efforts driven by government policies in the U.S. and Europe are fuelling TT’s growth in this market.

The company reported better-than-expected earnings and revenue performance in the past four quarters, benefiting from a strong demand situation, especially in commercial HVAC globally, acquisitions, positive price realization, volume growth, and productivity. In the fourth quarter of 2024, TT’s adjusted EPS increased 20.3% year over year.

 

Commitment to shareholder returns makes TT reliable for investors to compound wealth over the long term. In 2022, 2023, and 2024, the company repurchased shares worth $1.2 billion, $669.3 million, and $1.3 billion, respectively. It paid $620.2 million, $683.7 million, and $757.5 million in dividends in 2022, 2023, and 2024, respectively.

Trane Technologies' current ratio (a measure of liquidity) in the fourth quarter of 2024 was 1.21, which is lower than the industry’s 1.27. However, the current ratio has increased from the year-ago quarter’s 1.14, mainly due to a rise in cash and equivalents. A current ratio of more than 1 might assist the company in paying off short-term debts efficiently.

Zacks Rank and Key Picks

TT carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are Maximus (MMS - Free Report) and Booz Allen Hamilton (BAH - Free Report) .

Maximus currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MMS has an encouraging earnings surprise history having outpaced the Zacks Consensus estimate in three of the trailing four quarters and missed once. The average beat being 13.3%.

Booz Allen Hamilton currently carries a Zacks Rank #2 (Buy). BAH has an impressive earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 6.7%.


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Booz Allen Hamilton Holding Corporation (BAH) - free report >>

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