In the latest close session, Eaton (ETN) was up +1.76% at $380.02. The stock outperformed the S&P 500, which registered a daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.71%.
The power management company's stock has climbed by 7% in the past month, exceeding the Industrial Products sector's gain of 3.99% and the S&P 500's gain of 4.26%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.06, signifying a 7.75% increase 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.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $12.08 per share and revenue of $27.57 billion. These results would represent year-over-year changes of +11.85% and +10.8%, respectively.
Investors should also note any recent changes to analyst estimates for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Eaton presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Eaton has a Forward P/E ratio of 30.91 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.28.
One should further note that ETN currently holds a PEG ratio of 2.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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