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Swords, Ireland-based Trane Technologies plc (TT) designs, manufactures, sells, and services industrial equipment. With a market cap of $81.4 billion, the company offers central heaters, air conditioners, electric vehicles, air cleaners, and fluid handling products.
Shares of the global climate innovator have outperformed the broader market over the past year. TT has gained 36.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. However, in 2025, TT stock is up marginally, compared to the SPX’s 4.5% rise on a YTD basis.
Zooming in further, TT’s outperformance is also apparent compared to the Invesco Building & Construction ETF (PKB). The exchange-traded fund has gained about 14.9% over the past year. Moreover, TT’s marginal returns on a YTD basis outshine the ETF’s 1% loss over the same time frame.
TT's strong performance is fueled by growing demand for innovative solutions in energy efficiency and clean water, driving incremental growth.
On Jan. 30, TT shares closed up marginally after reporting its Q4 results. Its revenue was $4.9 billion, surpassing analyst estimates of $4.8 billion. The company’s adjusted EPS of $2.61 exceeded analyst estimates of $2.54.
For fiscal 2025, ending in December, analysts expect TT’s EPS to grow 14.4% to $12.83 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering TT stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with seven analysts suggesting a “Strong Buy.”
On Jan. 30, JPMorgan Chase & Co. (JPM) analyst Stephen Tusa maintained a “Hold” rating on TT with a price target of $396, implying a potential upside of 6.9% from current levels.
The mean price target of $426.39 represents a 15.1% premium to TT’s current price levels. The Street-high price target of $500 suggests an ambitious upside potential of 34.9%.
