In the latest trading session, Eaton (ETN) closed at $354.37, marking a +2.03% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.72%.
The power management company's shares have seen an increase of 9.05% over the last month, surpassing the Industrial Products sector's gain of 6.7% and the S&P 500's gain of 0.78%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on February 3, 2026. The company is forecasted to report an EPS of $3.33, showcasing a 17.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.11 billion, indicating a 13.87% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.07 per share and a revenue of $27.49 billion, indicating changes of +11.76% and 0%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.91% lower within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 25.64. This expresses a premium compared to the average Forward P/E of 24.49 of its industry.
Investors should also note that ETN has a PEG ratio of 2.29 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ETN's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
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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