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Swords, Ireland-based Trane Technologies plc (TT) designs, manufactures, sells, and services industrial equipment. With a market cap of $78.3 billion, the company offers central heaters, air conditioners, electric vehicles, air cleaners, and fluid handling products.
Companies worth $10 billion or more are generally described as “large-cap stocks.” TT effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the Building Products & Equipment industry. TT's success in the market is driven by its strong brand presence, and commitment to innovation, with its Trane and Thermo King brands, recognized for quality in HVAC and transportation refrigeration.
TT has slipped 2.4% from its 52-week high of $363.15, achieved on Sep. 3. Over the past three months, TT stock has gained 9%, outperforming the Invesco Building & Construction ETF’s (PKB) 5.6% gains during the same time frame.
In the longer term, shares of Trane Technologies rose 45.3% on a YTD basis and climbed 68.4% over the past 52 weeks, outperforming PKB’s YTD gains of 14.4% and 32.1% returns over the last year.
To confirm the bullish trend, TT has mostly traded above its 200-day moving average over the past year, and experienced slight fluctuations. It is trading above its 50-day moving average since mid-August.
Strong growth in commercial and residential HVAC bookings in the U.S., as well as high demand for data center cooling solutions, has driven TT's impressive performance this year.
On Jul. 31, TT shares closed up more than 1% after reporting its Q2 earnings results. Its adjusted EPS of $3.30 surpassed Wall Street expectations of $3.08. The company’s revenue was $5.3 billion, beating Wall Street forecasts of $5.1 billion. TT expects full-year adjusted EPS to be $10.80.
TT’s rival, Carrier Global Corporation’s (CARR) shares, have lagged behind the stock, with a 28.2% uptick on a YTD basis and 25% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on TT’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $360.25 suggests a potential upside of 1.7% from current price levels.
On the date of publication, Neha Panjwani 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.
