Eaton (ETN) closed at $380.24 in the latest trading session, marking a +2.04% move from the prior day. This change outpaced the S&P 500's 0.78% gain on the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Coming into today, shares of the power management company had gained 8.56% in the past month. In that same time, the Industrial Products sector gained 8.59%, while the S&P 500 gained 5.88%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is slated to reveal its earnings on August 5, 2025. The company's upcoming EPS is projected at $2.92, signifying a 6.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.93 billion, indicating a 9.09% growth compared to the corresponding quarter of the prior year.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $12.02 per share and revenue of $27.37 billion. These results would represent year-over-year changes of +11.3% and +10.01%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Eaton is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Eaton is holding a Forward P/E ratio of 31.01. Its industry sports an average Forward P/E of 24.04, so one might conclude that Eaton is trading at a premium comparatively.
Meanwhile, ETN's PEG ratio is currently 2.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.97.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Eaton Corporation, PLC (ETN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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