David BurrowsTrane TechnologiesTTCOMMENTFeb 27, 2023

Leave some $$ in your technology sleeve to allocate to one of the end users -- an industrial (TT) or big US bank (JPM or Citi) or retail/logistics (WMT or COST).

All 3 of the Top Picks today involve taking a bit of money away from the infrastructure plays.

This company does HVAC. It has this autonomous building control. Recently bought a company that has generative AI for building management, so everything can be put on cruise control. It also includes predictive maintenance. Yield is 0.96%.

Rallied 8% yesterday from a strong quarter. Their AC keeps data centres cool, but they sold off last year from slower business in housing (weak housing sales). Last October they cut their forecast. But this week they reported good numbers and an upbeat forecast. This broke their stock downturn.

An excellent company with a backlog of orders. Is up 55% this year, so it could come down a little.

A great HVAC play. Is up 292% in the past 5 years and 44% YTD. In late July reported a clean beat and raise with 13% organic revenue growth and raised its full-year forecast. Bookings grew 19% YOY and carry a $7.5 billion order backlog, heavy in commercial orders from data centres especially, schools and healthcare. Trades at a pricey 32x PE after a big run vs. 26x historical.

Recently reported a strong quarter. The company says it's riding the de-carbonization wave, energy efficiency, and digital transformation. Shares have jumped since that quarter.

A winner during this earnings season, reporting organic revenue growth of 9% and EPS up 23%.

A major HVAC company. They keep putting up excellent numbers, include a recent strong forecast. Shares are holding in this difficult market. Beat top and bottom line in their last quarter, Q4.