Trane Technologies plc TT is a technology services provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes TraneTechnologies an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Trane Technologies have returned 82.8%, significantly outperforming the 69.3% rally of the industry it belongs to.

Solid Rank: Trane Technologies currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to a stock's price. Seven estimates for 2024 have moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2024 earnings has climbed 1.7%.

Positive Earnings Surprise History: TraneTechnologies has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering an average beat of 7.9%.

Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2024 earnings of $11.07 indicates year-over-year growth of 22.5%. Moreover, earnings are expected to register 14.9% growth in 2024. The stock’s long-term expected earnings per share growth rate is 14.2%.

Growth Factors: Trane Technologies’ top-line benefits from its strong Commercial HVAC market. The current market size of the global Commercial HVAC market is $41.79 billion, which is expected to increase to $63.7 billion by 2029 at a CAGR of 8.8%. Increasing demand for its innovative customer-centric solutions, energy-efficient products, and decarbonization efforts driven by government policies in the U.S. and Europe are fuelling TT’s growth in this market.

The company has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2020, 2021, 2022 and 2023, it repurchased shares worth $250 million, $1.1 billion, $1.2 billion and $669.3 million, respectively. It paid $507.3 million, $561.1 million, $620 million and $683.7 millionin dividends in 2020, 2021, 2022 and 2023, respectively. Such moves indicate Trane Technologies’ commitment to boosting shareholders’ value, underlining its confidence in its business.

Other Stocks to Consider

Here are a few other top-ranked stocks that are worth considering.

DocuSign DOCU beat the Zacks Consensus Estimate in all four trailing quarters, with an earnings surprise of 27.1%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accenture ACN currently carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $64.18 billion, 4.2% higher than the year-ago reported figure. The consensus estimate for ACN’s bottom line is pegged at $11.59, indicating 4.2% year-over-year growth. It beat the Zacks Consensus Estimate in all the four trailing quarters, with an average of 5.7%.

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Accenture PLC (ACN) : Free Stock Analysis Report

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Docusign Inc. (DOCU) : Free Stock Analysis Report

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