Demand for technologies to address climate change and sustainability continues to grow. And global climate innovator Trane Technologies is helping to lead the charge.
TT stock is now just shy of a new buy point. It earns a spot on the IBD Leaderboard watchlist, as well as the IBD Big Cap 20.
Under flagship brands Trane and Thermo King, Trane Technologies produces environmentally-responsible products and services to foster sustainable climate solutions for buildings, homes and transportation.
The company was founded in 1885 as a family plumbing business. Today, the Ireland-based company has a global footprint, operating in the Americas, Asia-Pacific and across Europe, the Middle East and Africa (EMEA).
Industrial firm Ingersoll-Rand spun off Trane Technologies in 2020, allowing it to follow a new strategy focusing on environmental and climate-change initiatives.
Trane Technologies And The Gigaton Challenge
Through its Gigaton Challenge, Trane Technologies aims to reduce one gigaton — 1 billion metric tons — of carbon emissions from customers footprints by 2030.
The climate-change leader is re-imagining its supply chain and operations to have a restorative impact on the environment.
Kicking off 2023, Trane Technologies showcased its industry-leading residential heating and cooling connectivity at the CES meet in Las Vegas. The company demonstrated the mobile interactivity of its sustainable, energy-efficient Trane and American Standard Heating and Air Conditioning solutions with other smart home appliances and devices.
Trane Home and American Standard Home are the first digital solutions in the HVAC industry to seamlessly integrate a home's HVAC system with other smart home systems and appliances from 15 leading home solutions' brands.
Strong Demand For Climate Change Leader
Demand for Trane Technologies is growing as sustainability and climate-change solutions attract attention. In addition to sporting an "A" Accumulation/Distribution Rating and a strong 1.6 up/down volume ratio, TT stock made the latest list of new buys by the best mutual funds.
Trane Technology earns a 98 Composite Rating, tying SPX Technologies, a fellow leader in the Machinery-General Industrial industry group. The industry ranks a solid No. 38 among the 197 groups IBD tracks.
The global climate innovator has booked two quarters of accelerating earnings growth, including a 26% gain last quarter. Sales growth has ranged from 6% to 22% over the last seven quarters.
TT Stock Eyes First-Stage Breakout
Trane Technologies currently trades just below a 181.71 buy point in a cup with handle. This is a first-stage pattern since TT stock undercut the low in its prior pattern to reset the base count.
The relative strength line remains near a new 52-week high, earning a blue dot in MarketSmith.
With the market indexes back in an uptrend, see if Trane Technologies can continue to tap demand for climate change solutions and launch a sustained breakout.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
