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Trane Technologies (TT) Stock Moves -0.42%: What You Should Know

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The latest trading session saw Trane Technologies (TT - Free Report) ending at $430.82, denoting a -0.42% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%.

The the stock of manufacturer has risen by 6.23% in the past month, leading the Construction sector's gain of 3.1% and the S&P 500's gain of 5.17%.

The upcoming earnings release of Trane Technologies will be of great interest to investors. The company's upcoming EPS is projected at $3.76, signifying a 13.94% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.76 billion, up 8.49% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.89 per share and a revenue of $21.51 billion, representing changes of +14.88% and +8.41%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Trane Technologies. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Trane Technologies is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Trane Technologies is currently exchanging hands at a Forward P/E ratio of 33.58. Its industry sports an average Forward P/E of 31.36, so one might conclude that Trane Technologies is trading at a premium comparatively.

We can also see that TT currently has a PEG ratio of 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Building Products - Air Conditioner and Heating industry held an average PEG ratio of 2.07.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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