In the latest close session, Eaton (ETN) was up +1% at $372.21. This move outpaced the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
The power management company's shares have seen an increase of 4.69% over the last month, surpassing the Industrial Products sector's loss of 0.49% and the S&P 500's gain of 3.08%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.06, marking a 7.75% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.06 billion, up 11.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.08 per share and a revenue of $27.57 billion, demonstrating changes of +11.85% and +10.8%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. Eaton presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 30.51. For comparison, its industry has an average Forward P/E of 22.96, which means Eaton is trading at a premium to the group.
Also, we should mention that ETN has a PEG ratio of 2.63. 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 currently had an average PEG ratio of 1.82 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.
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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