We recently published a list of Louis Navellier’s 10 New Stock Picks. In this article, we are going to take a look at where Trane Technologies plc (NYSE:TT) stands against other Louis Navellier’s new stock picks.
Navellier & Associates is an independent money management firm founded in 1987 by renowned growth analyst Louis Navellier. Based in Reno, Nevada, the firm has more than thirty years of experience serving both individual and institutional clients through a disciplined, style-consistent investment approach. The firm’s mission is to maximize returns while managing excessive risk, offering customized portfolio strategies that incorporate a proprietary blend of quantitative and fundamental analysis. Navellier’s investment philosophy centers around identifying and exploiting inefficiencies in the market to uncover high-potential growth stocks. Unlike market indexes and firms that mimic market indexes, Navellier & Associates focuses on outperforming them, resulting in portfolios with low correlation to benchmarks, increased diversification, and reduced risk.
At the heart of Navellier’s investment process is a rigorous three-step, bottom-up stock selection methodology. The first step involves applying a proprietary quantitative screening process to evaluate market and individual stock statistics, specifically measuring reward through alpha and risk through standard deviation. This process narrows the investment options to stocks that rank in the upper percentiles for their risk/reward metrics. In the second step, fundamental analysis is used to identify stocks with exceptional profit margins, robust earnings growth, and forward-looking, reasonable price-to-earnings ratios. Finally, a proprietary optimization model allocates stocks within the portfolio to maximize alpha while minimizing volatility, ensuring that each portfolio is well-diversified across multiple sectors and industries. These strategies are particularly well-suited for long-term investors seeking steady returns in both bull and bear markets.
Louis Navellier himself brings over three decades of expertise to the firm. Since 1980, he has published quantitative research on growth stocks and remains a leading voice in the investment community. As the Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer of Navellier & Associates, he continues to oversee the same portfolios he helped launch. His investment insights have earned him frequent appearances on CNBC, Fox Business News, and regular quotes in leading financial outlets such as Bloomberg and MarketWatch. He has been featured in major publications like Forbes, Fortune, Barron’s, and The Wall Street Journal, and profiled in books such as Secrets of the Investment All-Stars and Investing Under Fire. Today, the firm manages over $1 billion in private and institutional accounts and remains a sought-after resource for high-net-worth individuals and institutions alike.
Navellier & Associates offers tailored portfolio reviews, designed to help clients make sound financial decisions aligned with their preferences, individual goals, and risk tolerance. These reviews include a comprehensive portfolio analysis, risk assessment, and personalized investment recommendations. Portfolios managed by Navellier range from $100,000 to over $100 million, and all recommendations are made on a person-by-person basis. This level of customization underscores the firm’s belief that every investor is unique and deserves a strategy that reflects their personal financial objectives.
In addition to its financial expertise, the Navellier team is composed of passionate professionals who share common interests and life goals with their clients. From hiking and skiing to golfing and parenting, the firm’s staff brings a personal touch to its services, fostering genuine connections with investors. Navellier & Associates is deeply committed to providing not only top-tier financial management but also exceptional client service, innovative investment tools, and cutting-edge market research. With a homegrown foundation and a global outlook, Navellier continues to help clients achieve long-term financial security through disciplined, adaptive, and data-driven investment strategies.
As of its most recent 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings account for 29.42% of this portfolio, reflecting its concentrated yet carefully optimized investment strategy grounded in systematic analysis and decades of market experience.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify the new stock picks that the firm invested in during the fourth quarter of the year. From the resultant data, we ranked the equities based on the hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A worker inspecting a newly installed heating unit in a modern home.
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.”
Overall, TT ranks 4th on our list of Louis Navellier’s new stock picks. While we acknowledge the potential of TT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.