Trane Technologies (TT) closed the most recent trading day at $409.41, moving -1.33% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.37%.
The manufacturer's shares have seen a decrease of 3.07% over the last month, not keeping up with the Construction sector's gain of 4.79% and the S&P 500's gain of 1.85%.
The upcoming earnings release of Trane Technologies will be of great interest to investors. In that report, analysts expect Trane Technologies to post earnings of $3.82 per share. This would mark year-over-year growth of 13.35%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.84 billion, indicating a 7.25% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.05 per share and a revenue of $21.55 billion, indicating changes of +16.31% and +8.65%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Trane Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. Currently, Trane Technologies is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Trane Technologies is presently trading at a Forward P/E ratio of 31.79. This represents a premium compared to its industry average Forward P/E of 30.72.
One should further note that TT currently holds a PEG ratio of 2.59. 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. The average PEG ratio for the Building Products - Air Conditioner and Heating industry stood at 1.87 at the close of the market yesterday.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Trane Technologies plc (TT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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