In the latest trading session, Trane Technologies (TT) closed at $426.61, marking a +1.24% move from the previous day. This move outpaced the S&P 500's daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Prior to today's trading, shares of the manufacturer had lost 1.79% was narrower than the Construction sector's loss of 2.43% and lagged the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Trane Technologies in its upcoming earnings disclosure. 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.
Investors might also notice recent changes to analyst estimates for Trane Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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).
In the context of valuation, Trane Technologies is at present trading with a Forward P/E ratio of 32.71. This valuation marks a premium compared to its industry average Forward P/E of 30.42.
Meanwhile, TT's PEG ratio is currently 2.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Air Conditioner and Heating industry held an average PEG ratio of 2.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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