Trane Technologies (TT) ended the recent trading session at $456.84, demonstrating a -1.49% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 2.65%. At the same time, the Dow lost 1.35%, and the tech-heavy Nasdaq lost 4.18%.
Shares of the manufacturer witnessed a loss of 1.29% over the previous month, trailing the performance of the Business Services sector with its loss of 0.53%, and the S&P 500's gain of 5.47%.
The upcoming earnings release of Trane Technologies will be of great interest to investors. On that day, Trane Technologies is projected to report earnings of $4.27 per share, which would represent year-over-year growth of 10.05%. At the same time, our most recent consensus estimate is projecting a revenue of $6.16 billion, reflecting a 7.22% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.83 per share and revenue of $23.25 billion, indicating changes of +13.55% and +9.05%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Trane Technologies. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Trane Technologies is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Trane Technologies is currently trading at a Forward P/E ratio of 31.27. This expresses a premium compared to the average Forward P/E of 16.19 of its industry.
One should further note that TT currently holds a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 32% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Trane Technologies plc (TT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).