Trane Technologies plc TT designs and manufactures climate control solutions. It is especially known for heating, ventilation, air conditioning (HVAC) and transport refrigeration systems. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time to add the stock to your portfolio.
What Makes Trane Technologies an Attractive Pick?
An Outperformer: The stock has registered impressive growth over the past year. Shares of TT have returned 10.8% against the 16% decline of the industry it belongs to.
1-Year Share Price Performance
Strong Growth Prospects: For revenues, the Zacks Consensus Estimate is pegged at $23.7 billion for 2026, suggesting an increase of 10.9% year over year. The same for 2027 is expected to rise 9% year over year. The Zacks Consensus Estimate for TT’s fiscal 2026 earnings is pegged at $15.31, implying a 17.2% year-over-year upsurge. For 2027, the same is anticipated to register a 14.7% year-over-year increase.
Northward Estimate Revisions: Six estimates for 2026 and 2027 moved north in the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2026 earnings has moved up 2.8% in the past 60 days. For 2027, the same has moved up 3.4% in the past 60 days.
Positive Earnings Surprise History: Trane Technologies has a decent earnings surprise history. The company beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 2.1%.
Growth Factors: TT registered a 70% year-over-year upsurge in backlog during the second quarter of 2026 following 37% growth in organic bookings. Notably, nearly $6 billion of the backlog is scheduled for 2027 and thereafter, raising future revenue visibility. Americas Commercial HVAC skyrocketed 50% year over year, while applied bookings recorded a lofty jump of 130%, marking the fourth consecutive quarter of growth exceeding 100%.
Alongside Commercial HVAC, the company witnessed substantial improvement in residential HVAC business as well. Residential HVAC revenues moved up at a low-teens rate organically during the second quarter of 2026, pushing management to hike 2026 prospects to mid-single-digit growth.
Trane Technologies maintains financial flexibility that supports investment in capacity and innovation while returning capital to shareholders. The company expects to deploy $2.8-$3.3 billion in 2026, raise its annualized dividend by 12% to $4.2 per share and repurchase nearly $840 million in shares through the second quarter of 2026.
TT’s Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Zacks Business Services sector include CBIZ CBZ and Coherent Corp. COHR, each carrying a Zacks Rank #2 at present.
CBIZ has a long-term earnings growth expectation of 11.6%. CBZ delivered a trailing four-quarter earnings surprise of 8.9%, on average.
Coherent has a long-term earnings growth expectation of 52.5%. COHR delivered a trailing four-quarter earnings surprise of 6.2%, on average.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>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
Trane Technologies plc (TT): Free Stock Analysis Report
CBIZ, Inc. (CBZ): Free Stock Analysis Report
Coherent Corp. (COHR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).