In the latest close session, Eaton (ETN) was down 1.12% at $373.46. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 0.16%.
Shares of the power management company have depreciated by 0.16% over the course of the past month, underperforming the Industrial Products sector's gain of 1.12%, and the S&P 500's gain of 1.16%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on November 4, 2025. The company's earnings per share (EPS) are projected to be $3.06, reflecting a 7.75% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.06 billion, up 11.23% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.08 per share and a revenue of $27.57 billion, representing changes of +11.85% and +10.83%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 moved 0.03% higher. Eaton is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 31.26. This signifies a premium in comparison to the average Forward P/E of 24.34 for its industry.
Investors should also note that ETN has a PEG ratio of 2.7 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.97 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% of all 250+ industries.
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 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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