In the latest close session, Eaton (ETN) was down 1.79% at $337.59. The stock's change was more than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow experienced a drop of 1.76%, and the technology-dominated Nasdaq saw a decrease of 2.39%.
The power management company's shares have seen an increase of 7.29% over the last month, not keeping up with the Industrial Products sector's gain of 8.4% and outstripping the S&P 500's gain of 1.63%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $3.33, marking a 17.67% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.11 billion, indicating a 14% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.07 per share and a revenue of $27.51 billion, representing changes of +11.76% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.7% downward. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 25.33. This expresses a premium compared to the average Forward P/E of 23.24 of its industry.
It's also important to note that ETN currently trades at a PEG ratio of 2.31. 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 Manufacturing - Electronics industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 91, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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