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Swords, Ireland-based Trane Technologies plc (TT) designs, manufactures, sells, and services products for heating, ventilation, air conditioning, and transport solutions. With a market cap of $79.4 billion, the company operates in 3 regional segments: Americas; EMEA (Europe, Middle East, and Africa); and Asia Pacific.
Shares of this climate technology company have significantly outperformed the broader market over the past 52 weeks. TT has soared 75.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.4%. In 2024, shares of TT rose 44.9%, compared to SPX’s 17.5% return on a YTD basis.
Zooming in further, TT’s outperformance looks even more pronounced when compared to DWA Industrials Momentum Invesco ETF’s (PRN) 35.3% gain over the past 52 weeks and 20.1% return on a YTD basis.
Shares of TT rose 1.7% on Jul. 31 following its Q2 earnings release, driven by revenues and earnings surpassing estimates. The strong performance was fueled by robust booking growth in the commercial and residential HVAC sectors in America and the strong demand for data center cooling solutions, coupled with a positive growth outlook for the company for the year.
For the current fiscal year, ending in December, analysts expect TT’s EPS to grow 19.7% year over year to $10.82.The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, 11 “Holds,” and one “Strong Sell.”
Overall, the configuration has remained fairly steady over the past months.
On Aug. 1, RBC Capital maintained a “Sector Perform” rating on Trane Technologies, citing valuation concerns, and raised the price target to $350 due to strong performance and upwardly revised guidance.
The mean price target of $355.60 represents a premium of just 1.4% to TT’s current levels. The street-high price target of $394, implies a potential upside of 12.3% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
