Eaton (ETN) ended the recent trading session at $365.90, demonstrating a +1.62% change from the preceding day's closing price. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, added 0.45%.
The stock of power management company has risen by 1.4% in the past month, lagging the Industrial Products sector's gain of 2.6% and the S&P 500's gain of 3.44%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. In that report, analysts expect Eaton to post earnings of $3.06 per share. This would mark year-over-year growth of 7.75%. Alongside, our most recent consensus estimate is anticipating revenue of $7.06 billion, indicating a 11.3% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.08 per share and a revenue of $27.56 billion, demonstrating changes of +11.85% and +10.79%, respectively, from the preceding year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% increase. Eaton is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 29.81. This valuation marks a premium compared to its industry average Forward P/E of 23.42.
We can additionally observe that ETN currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.83.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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