In the latest close session, Eaton (ETN) was down 1.46% at $384.40. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%.
The stock of power management company has risen by 8.91% in the past month, leading the Industrial Products sector's gain of 5.14% and the S&P 500's gain of 2.68%.
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. In that report, analysts expect Eaton to post earnings of $2.92 per share. This would mark year-over-year growth of 6.96%. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 9.09% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.02 per share and revenue of $27.37 billion, which would represent changes of +11.3% and +10.01%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Eaton presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 32.46. This indicates a premium in contrast to its industry's Forward P/E of 24.33.
One should further note that ETN currently holds a PEG ratio of 2.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 2.01 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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