Trane Technologies gapped up from the 10-week moving average after first-quarter results on April 30. Now, Trane stock is Thursday's selection for IBD 50 Stocks To Watch.
Shares of the ventilation provider are approaching a buy point of 422 in a cup base and are on track for a 13-day winning streak. The buy point is also the stock's all-time high.
Earnings of $2.45 a share increased 26% from the prior year and sales grew 11% to $4.7 billion. Analysts polled by FactSet estimate a 15% profit increase to $12.91 per share in 2025, and 12% growth to $14.47 per share in 2026. For the full-year, Trane expects an 8% rise in sales at the midpoint.
The relative strength line is at a new high, going by the blue dot on IBD MarketSurge's weekly chart. The all-around score is at 95 out of a best-possible 99 while the Earnings Per Share Rating stands at 97. The stock holds a Relative Strength Rating of 89.
Trane Stock: Strong Institutional Support
Shares are in an early-stage base. That could lead to higher gains after a strong breakout in higher volume. One bearish touch to Trane stock's chart can be seen in the 200-day moving average which is stacked above the 50-day line.
Trane Technologies sells heating, ventilation and air conditioning systems and parts for residential and commercial buildings.
Mutual funds own 52% of outstanding shares. More funds have been net buyers of the stock over the past seven quarters. Funds have also been adding the stock to their holdings in the recent 13 weeks, giving Trane stock an Accumulation/Distribution Rating of B.
The Up/Down Volume Ratio of 1.3 also reflects demand for the stock in the past 50 trading days. In the Investor's Business Daily's mutual fund index, the Franklin Growth Fund (FKGRX) and the MFS Growth Fund (MFEGX) hold shares of Trane stock.
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