Trane Technologies (TT) ended the recent trading session at $382.30, demonstrating a -3.45% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
The manufacturer's shares have seen a decrease of 2.72% over the last month, not keeping up with the Business Services sector's gain of 4.06% and the S&P 500's gain of 1.03%.
The investment community will be paying close attention to the earnings performance of Trane Technologies in its upcoming release. The company is forecasted to report an EPS of $2.82, showcasing a 8.05% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $5.07 billion, up 4.12% from the prior-year quarter.
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 +7.13%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Trane Technologies. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.01% decrease. Trane Technologies presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Trane Technologies is presently trading at a Forward P/E ratio of 30.41. For comparison, its industry has an average Forward P/E of 19, which means Trane Technologies is trading at a premium to the group.
We can also see that TT currently has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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