Trane Technologies Stock Rises 11% in a Year: What You Should Know

Trane Technologiesplc TT stock has had an impressive run over the past year. TT shares have appreciated 11.3%, outperforming the 10.8% growth of the industry.What’s Driving TT Stock?The company reported better-than-expected earnings and revenue performance in the past four quarters, benefiting from a strong demand situation, especially in commercial HVAC globally, acquisitions, positive price realization, volume growth and productivity. In the fourth quarter of 2024, TT’s adjusted EPS increased 20.3% year over year. Revenues rose 10.2% year over year.Trane Technologies plc Price Trane Technologies plc price | Trane Technologies plc QuoteTrane Technologies is seasonally balanced. Demand for air conditioning systems and services is low during autumn and winter, which is why, in the fourth quarter of 2023 and the first quarter of 2024, revenues declined quarter-over-quarter by 9.4% and 4.7%, respectively. Similarly, when heating sales pick up during the second and third quarters, revenues rise, as evident from quarter-over-quarter gains of 25.9% and 2.5% in the second and third quarters of 2024, respectively, offsetting weakness in autumn and winter. Additionally, the holidays being in this season would typically increase transport solution sales, further offsetting the seasonality. Commitment to shareholder returns makes TT reliable for investors to compound wealth over the long term. In 2022, 2023, and 2024, the company repurchased shares worth $1.2 billion, $669.3 million, and $1.3 billion, respectively. It paid $620.2 million, $683.7 million, and $757.5 million in dividends in 2022, 2023, and 2024, respectively.Trane Technologies' current ratio (a measure of liquidity) in the fourth quarter of 2024 was 1.21, lower than the industry’s 1.27. However, the current ratio has increased from the year-ago quarter’s 1.14, mainly due to a rise in cash and equivalents. A current ratio of more than 1 might assist the company in paying off short-term debts efficiently.Zacks Rank and Key PicksTT carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks are Limbach Holdings, Inc. LMB and PagSeguro Digital PAGS.Limbach Holdings sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.LMB has a long-term earnings growth expectation of 12%. It delivered a trailing four-quarter earnings surprise of 42.3%, on average.PagSeguro Digital flaunts a Zacks Rank of 1 at present.PAGShas a long-term earnings growth expectation of 13.6%. It delivered a trailing four-quarter earnings surprise of 9.3% on average.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trane Technologies plc (TT): Free Stock Analysis Report Limbach Holdings, Inc. (LMB): Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks