Eaton (ETN) closed at $364.74 in the latest trading session, marking a -2.01% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.5%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.5%.
Shares of the power management company have appreciated by 5.92% over the course of the past month, outperforming the Industrial Products sector's loss of 1.21%, and the S&P 500's gain of 2.74%.
The upcoming earnings release of Eaton will be of great interest to investors. The company's upcoming EPS is projected at $3.06, signifying a 7.75% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.06 billion, indicating a 11.34% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.08 per share and revenue of $27.57 billion, indicating changes of +11.85% and +10.8%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. As of now, Eaton holds a Zacks Rank of #3 (Hold).
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.81. This indicates a premium in contrast to its industry's Forward P/E of 22.65.
One should further note that ETN currently holds a PEG ratio of 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.87.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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