In the latest close session, Trane Technologies (TT) was up +1.02% at $406.58. The stock outperformed the S&P 500, which registered a daily gain of 0.49%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.72%.
Coming into today, shares of the manufacturer had lost 4.68% in the past month. In that same time, the Construction sector gained 0.54%, while the S&P 500 gained 2.99%.
Market participants will be closely following the financial results of Trane Technologies in its upcoming release. It is anticipated that the company will report an EPS of $3.82, marking a 13.35% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.82 billion, showing a 7% escalation compared to the year-ago quarter.
TT's full-year Zacks Consensus Estimates are calling for earnings of $13.04 per share and revenue of $21.52 billion. These results would represent year-over-year changes of +16.22% and +8.46%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Trane Technologies. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Trane Technologies is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Trane Technologies currently has a Forward P/E ratio of 30.86. This expresses a premium compared to the average Forward P/E of 29.36 of its industry.
We can additionally observe that TT currently boasts a PEG ratio of 2.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Air Conditioner and Heating industry held an average PEG ratio of 1.88.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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