Trane Technologies plc TT has soared 45.6% in the past year, outshining its industry’s growth of 31% and besting the S&P 500 composite’s 21.3% in the same period. Impressively, the company exceeded the Zacks Consensus Estimate in all of the past four quarters, delivering an average surprise of 6.8%.
Driving Forces Behind the Surge
Trane Technologies has shown unwavering commitment to bolstering business operations and fostering innovation through transformative projects and investments. With the aim of streamlining its cost structure, the company is set to achieve annualized savings of $300 million by 2023.
Trane Technologies’ Stock Performance
Trane Technologies plc price | Trane Technologies plc Quote
Emphasizing the importance of shareholder value, Trane Technologies employs a blend of share repurchases and dividends to reward investors. In the years 2022, 2021, 2020, and 2019, it repurchased shares worth $1.2 billion, $1.1 billion, $250 million, and $750.1 million, respectively. In addition, dividends distributed totaled $620 million, $561.1 million, $507.3 million, and $510.1 million in 2022, 2021, 2020, and 2019, respectively. These strategic measures underscore the company’s confidence in its business and ongoing commitment to enhancing shareholder value.
Committed to enhancing product efficacy and user-friendliness, Trane Technologies allocated $211.2 million to research and development in 2022, reinforcing its dedication to innovation. Notable investments of $193.5 million in 2021 and $165 million in 2020 further highlight the company’s enduring commitment to technology advancement and ensuring product excellence.
Capitalizing on strategic partnerships, Trane Technologies recently united with BrainBox AI, a pioneer in autonomous decarbonization for buildings. This collaboration integrates Trane’s Tracer SC+ building automation system with BrainBox AI’s autonomous decarbonization AI technology, offering a distinctive solution for Trane customers to reduce greenhouse gas emissions and optimize operational costs.
Zacks Rank and Potential Stocks
TT currently holds a Zacks Rank #3 (Hold).
Here are some promising stocks from the broader Business Services sector:
Broadridge Financial Solutions BR: The Zacks Consensus Estimate for the company’s 2023 revenues indicates 7.7% growth from the year-ago reported figure, while earnings are expected to rise 10.1%. The company has exceeded the consensus estimate in three of the past four quarters, with the average surprise being 5.4%. BR presently holds a Zacks Rank of 2 (Buy).
Booz Allen BAH: The Zacks Consensus Estimate for BAH’s 2023 revenues indicates 13% growth from the year-ago reported figure, while earnings are expected to rise 10.3%. The company has outperformed the consensus estimate in three of the four quarters, with the average surprise being 7.7%. BAH currently carries a Zacks Rank of 2.
Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
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