In the latest market close, Eaton (ETN) reached $251.25, with a -0.48% movement compared to the previous day. This move was narrower than the S&P 500's daily loss of 1.57%. On the other hand, the Dow registered a loss of 0.84%, and the technology-centric Nasdaq decreased by 2.15%.
Shares of the power management company have depreciated by 9.06% over the course of the past month, outperforming the Industrial Products sector's loss of 16.32% and the S&P 500's loss of 12.16%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.70, marking a 12.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.27 billion, indicating a 5.46% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.04 per share and a revenue of $26.74 billion, representing changes of +11.48% and +7.48%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 moved 0.07% higher. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 20.97. This valuation marks a premium compared to its industry's average Forward P/E of 17.63.
Investors should also note that ETN has a PEG ratio of 2.01 right now. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow ETN in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eaton Corporation, PLC (ETN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
