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With a market cap of $92.8 billion, Trane Technologies plc (TT) is a global leader in designing, manufacturing, and servicing climate control products for heating, ventilation, air conditioning (HVAC), and transport solutions. The Swords, Ireland-based company distributes its products through branch sales offices, dealers, and distributors in the U.S., and via subsidiary sales and service companies worldwide.
Companies worth more than $10 billion are generally described as “large-cap” stocks and Trane Technologies fits right into that category. Trane operates across three regional segments: Americas; EMEA; and Asia Pacific, and provides residential and commercial HVAC systems, energy solutions, and transport refrigeration systems. With ongoing investments in research and development, it is committed to advancing innovative and sustainable climate control solutions globally.
Despite a 2.3% pullback from its 52-week high of $422 reached on Nov. 25, shares of this manufacturer company have gained 20.5% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 12.6% return over the same time frame.
In the longer term, TT stock has climbed 69% on a YTD basis, outpacing SPX’s 27.7% gain. Moreover, shares of TT have jumped 78.8% over the past 52 weeks, compared to SPX’s 33.9% return over the same time frame.
TT has been trading above its 50-day and 200-day moving averages since last year.
Despite reporting better-than-expected Q3 adjusted EPS of $3.37 and revenue of $5.4 billion, Trane Technologies' shares dipped 3.9% on Oct. 30 due to weak Asia Pacific performance, where revenue declined 20.7% to $298.5 million and bookings dropped 30.3% to $279 million. The adjusted operating margin also contracted 290 basis points to 19.1%, signaling cost pressures despite overall growth.
However, on Nov. 12, Trane Technologies and Autodesk announced a strategic collaboration to integrate Trane’s TRACE® software with Autodesk Revit, enhancing HVAC design efficiency and sustainability through AI-assisted workflows. The partnership targets improved building emissions and design accuracy in high-BIM adoption regions like the U.S. and Canada.
Trane Technologies has outperformed its rival, Carrier Global Corporation (CARR), which gained nearly 39% over the past 52 weeks and 28.2% on a YTD basis.
Despite TT’s robust performance over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock, and as of writing, TT is trading below the mean price target of $423.50.
