In the latest trading session, Eaton (ETN) closed at $288.70, marking a +0.59% move from the previous day. This change lagged the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 1.26%.
The power management company's stock has climbed by 2.18% in the past month, exceeding the Industrial Products sector's loss of 6.87% and the S&P 500's loss of 4.77%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company's earnings report is set to go public on May 2, 2025. 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 5.43% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.01 per share and a revenue of $26.7 billion, indicating changes of +11.2% and +7.33%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 23.91. This expresses a premium compared to the average Forward P/E of 19.95 of its industry.
Investors should also note that ETN has a PEG ratio of 2.29 right now. 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 1.71 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.
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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