With a market cap of $76.6 billion, Swords, Ireland-based Trane Technologies plc (TT) is a global leader in designing, manufacturing, selling, and servicing climate control solutions for heating, ventilation, air conditioning (HVAC), and transport refrigeration. It serves residential, commercial, and industrial customers with a wide range of products, including air conditioners, heat pumps, energy management solutions, and refrigeration systems.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Trane Technologies fits this criterion perfectly. Trane distributes its products through sales offices, dealers, and subsidiaries worldwide, focusing on innovation, sustainability, and energy-efficient solutions.
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However, the HVAC giant is down 20.2% from its 52-week high of $422, achieved on Nov. 27. Shares of TT have declined 18.3% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 9.5% decrease over the same time frame.
Nevertheless, in the longer term, TT is down 8.8% on a YTD basis, lagging behind NASX's 6.9% dip. However, shares of Trane Technologies have increased 17.2% over the past 52 weeks, surpassing NASX's 10.5% return over the same time frame.
Trane Technologies, which had been trading above its 50-day and 200-day moving averages since last year, has recently fallen below both levels.
Trane Technologies' shares recovered marginally on Jan. 30 after reporting a 10% rise in Q4 2024 net revenue to $4.9 billion, surpassing analysts' estimates. The company benefited from a 12% revenue increase in its Americas segment and a 5% rise in EMEA, driven by strong demand for HVAC systems in commercial buildings and data centers. Additionally, Trane posted adjusted EPS of $2.61, exceeding expectations. Its 2025 guidance, forecasting 6.5% - 7.5% revenue growth and an adjusted EPS of $12.70 - $12.90, further boosted investor confidence.
Compared to Trane Technologies, rival Carrier Global Corporation (CARR) has underperformed over the past 52 weeks with a 10.9% gain but has seen a smaller YTD decline of 3.3%.
Despite TT’s strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 20 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $426.39.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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