Trane Technologies (TT) Shares Up 22% in 3 Months: Here's How
Trane Technologies plc’s TT stock has had an impressive run over the past three months. Shares appreciated 21.6% against a 3.8% decline of the industry it belongs to and a 0.9% fall of the Zacks S&P 500 composite.
Let’s delve into the factors that have contributed to the company’s outperformance.
Consecutive Earnings & Revenue Beat
Trane came up with better-than-expected earnings and revenue performances in the past three quarters. The top line benefited from the company’s steps to increase the revenue stream from parts, services, controls, used equipment and rentals. The bottom line was aided by improving the quality of products and services, and operating efficiencies.
Trane Technologies plc Price
Trane Technologies plc price | Trane Technologies plc Quote
Raised Full-Year 2022 Guidance
Trane raised its guidance for full-year 2022. The company expects revenues to increase 11% on a reported basis and 12% on an organic basis compared with the prior expectation of a 9% increase on a reported basis and 10% on an organic basis.
Adjusted EPS is expected to be between $7.05 and $7.15 compared with the previously expected range of $6.95-$7.15. The midpoint of the raised guided range is the same as the current Zacks Consensus Estimate of $7.10.
Consistent Dividend Payer
Trane has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, 2020 and 2019, the company repurchased shares worth $1.10 billion, $250 million and $750.1 million, respectively. It paid out $561.1 million, $507.3 million and $510.1 million in dividends during 2021, 2020 and 2019, respectively. Such moves indicate Trane’s commitment to boosting shareholders’ value and underlining its confidence in its business.
Zacks Rank and Stocks to Consider
Trane Technologies currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. CAR, Genpact Limited G and CRA International, Inc. CRAI.
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Charles River Associates (CRAI) : Free Stock Analysis Report
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Genpact Limited (G) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
