Eaton (ETN) ended the recent trading session at $381.72, demonstrating a +1.97% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Heading into today, shares of the power management company had gained 0.85% over the past month, lagging the Industrial Products sector's gain of 1.02% and the S&P 500's gain of 1.02%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $7.06 billion, up 11.33% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $27.58 billion, which would represent changes of +11.94% and +10.86%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.96. This indicates a premium in contrast to its industry's Forward P/E of 23.01.
Investors should also note that ETN has a PEG ratio of 2.67 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 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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