Trane Technologies describes itself on its website as a "global climate innovator." The climate control systems giant's stock has been a top-performer over the years. And on Wednesday the Relative Strength (RS) Rating for Trane stock climbed from 69 to 73.
The upgraded 73 RS Rating puts Trane in the top 27% of stocks for price performance this past year. It's a welcome improvement but shy of the ideal. Research shows that top-performing stocks often have an RS Rating above 80 in the early stages of their biggest moves higher.
Trane Stock Among Top 11% Overall
However, Trane stock has an 89 Composite Rating, out of 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Ireland-based Trane also carries an outstanding 91 Earnings Per Share Rating, putting it in the top 9% of companies for recent and long-term profit growth, with emphasis on the two most recent quarters. Its SMR Rating (sales + profit margins + return on equity) is a bullish B on an A-to-E scale with A superb and E dismal.
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Trane Technologies specializes in heating, ventilation, air conditioning and refrigeration systems. With the exception perhaps of heating, its markets are firing on all cylinders as the hot summer months approach.
Stock Price Surged 160% From Low
Trane's stock is working on a double-bottom base with a 189.58 buy point. See if it can clear the breakout price in volume at least 40% above average. Its stock dropped to a 70 low at the end of March 2000 amid the Covid market crash. It traded at about 182 Wednesday afternoon, up about 160% from its low.
Trane Technologies showed 26% EPS growth last quarter to $1.41 per share. The prior two quarters its EPS grew 26%, then 34%. Sales increased 9% to $3.67 billion last quarter.
Trane stock earns the No. 25 rank among its peers in the Machinery-General Industrial industry group. EVI Industries and Parker Hannifin are among the group's highest-rated stocks. The group itself ranks a lofty No. 16 on IBD's list of 197 industries.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary RS Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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