Is Trane Technologies Stock Outperforming the Nasdaq?

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.

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 per share, exceeding expectations. Its 2025 guidance, forecasting 6.5% - 7.5% revenue growth and an adjusted profit of $12.70 - $12.90 per share, 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.