Eaton (ETN) ended the recent trading session at $323.66, demonstrating a -2.02% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The power management company's shares have seen an increase of 1.08% over the last month, not keeping up with the Industrial Products sector's gain of 1.95% and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's earnings per share (EPS) are projected to be $2.93, reflecting a 7.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.92 billion, up 8.92% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.01 per share and revenue of $27.27 billion. These totals would mark changes of +11.2% and +9.63%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Eaton presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 27.51. For comparison, its industry has an average Forward P/E of 23.03, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.56 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. The Manufacturing - Electronics industry had an average PEG ratio of 1.85 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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