Eaton (ETN) closed the most recent trading day at $353.87, moving +1.76% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 1.38%.
The power management company's shares have seen a decrease of 6.97% over the last month, not keeping up with the Industrial Products sector's loss of 6.24% and the S&P 500's loss of 2.65%.
The upcoming earnings release of Eaton will be of great interest to investors. The company's upcoming EPS is projected at $2.77, signifying a 1.84% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.07 billion, up 10.91% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.36 per share and revenue of $30.16 billion, indicating changes of +10.69% and +9.9%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. Eaton currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 26.04. For comparison, its industry has an average Forward P/E of 24.88, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 1.87 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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