4. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders as of Q4: 65
Navellier & Associates’ Equity Stake: $4.75 Million
Trane Technologies plc (NYSE:TT) is an American-Irish domiciled company specializing in heating, ventilation, air conditioning (HVAC), and refrigeration systems. The company’s corporate history spans more than 150 years and has been shaped by a series of mergers and strategic spin-offs. In 2008, HVAC manufacturer Trane was acquired by Ingersoll Rand, a U.S.-based industrial tools company. In 2020, following the spin-off of its tools business as a standalone Ingersoll Rand, the remaining business was rebranded as Trane Technologies, focusing entirely on climate control and energy efficiency solutions.
For the quarter ended December 2024, Trane Technologies plc (NYSE:TT) outperformed market expectations, posting earnings per share (EPS) of $2.61, a 3.6% surprise above the projected $2.52. Revenue of $4.87 billion also exceeded forecast by $100 million, continuing a reliable trend of earnings beats that underscore the company’s strong market position and operational discipline. Building on this momentum, Trane Technologies projects organic revenue growth of 7–8% for 2025 and expects adjusted EPS to fall between $12.70 and $12.90, representing a 13–15% increase. The company is also targeting over 100% free cash flow conversion for the year. Residential market growth is anticipated to reach mid-single digits, while transport markets are expected to remain stable.
Despite its positive outlook, Trane Technologies plc (NYSE:TT) faces considerable challenges in the near future. Potential tariff changes could affect the company’s cost structures and profitability, while market saturation in specific verticals may limit future growth opportunities. Supply chain disruptions also remain a possible obstacle to meeting growing demand, and broader macroeconomic pressures such as inflation could impact consumer spending behavior. Additionally, evolving regulatory requirements related to environmental policies may affect operational strategies and cost dynamics in the years ahead.
Navellier & Associates invested over $4.75 million to purchase 12,867 shares of Trane Technologies plc (NYSE:TT) in the December quarter, effectively placing it in the list of Louis Navellier’s new stock picks. For the same quarter, 65 hedge funds out of the 1,009 firms tracked by Insider Monkey reported having stakes in the company, with a combined value of nearly $2.88 billion.
Aristotle Atlantic Focus Growth Strategy stated the following regarding Trane Technologies plc (NYSE:TT) in its Q4 2024 investor letter:
“Trane Technologies plc (NYSE:TT) detracted from performance in the fourth quarter of 2024. The company reported better than expected revenue and earnings growth at the end of October. The stock declined in December despite two investor conferences early in the month where the company reiterated expectations that current strong trends in commercial HVAC will continue into 2025, the service business is continuing to experience low double-digit growth, and the residential business is expected to improve from a lull in 2024. Higher interest rates have been a drag on industrial stock performance generally in December. Strength in the US dollar in 2025 will impact large cap companies like Trane, which have international exposure.”
