Trane Technologies (TT) closed the most recent trading day at $460.14, moving +2.45% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.
Heading into today, shares of the manufacturer had lost 4.65% over the past month, lagging the Business Services sector's loss of 1.26% and the S&P 500's loss of 1.63%.
Market participants will be closely following the financial results of Trane Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be $4.27, reflecting a 10.05% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.16 billion, up 7.22% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.83 per share and revenue of $23.25 billion, which would represent changes of +13.55% and +9.05%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Trane Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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 holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Trane Technologies currently has a Forward P/E ratio of 30.29. This represents a premium compared to its industry average Forward P/E of 16.08.
Meanwhile, TT's PEG ratio is currently 2.08. 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 the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.32.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Trane Technologies plc (TT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).