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.
