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Trane Technologies (TT) Falls More Steeply Than Broader Market: What Investors Need to Know

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Trane Technologies (TT - Free Report) ended the recent trading session at $397.27, demonstrating a -1.04% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Shares of the manufacturer have depreciated by 7.61% over the course of the past month, underperforming the Business Services sector's loss of 0.85%, and the S&P 500's gain of 1.2%.

The investment community will be closely monitoring the performance of Trane Technologies in its forthcoming earnings report. The company is predicted to post an EPS of $2.82, indicating a 8.05% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.07 billion, indicating a 4.03% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.02 per share and a revenue of $21.25 billion, representing changes of +16.04% and +7.11%, respectively, from the prior year.

Any recent changes to analyst estimates for Trane Technologies should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Trane Technologies is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Trane Technologies has a Forward P/E ratio of 30.83 right now. For comparison, its industry has an average Forward P/E of 19.12, which means Trane Technologies is trading at a premium to the group.

It's also important to note that TT currently trades at a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TT's industry had an average PEG ratio of 1.65 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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