Eaton (ETN) closed the most recent trading day at $405.83, moving +1.57% from the previous trading session. This change outpaced the S&P 500's 0.81% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Shares of the power management company have appreciated by 6.42% over the course of the past month, outperforming the Industrial Products sector's gain of 0.86%, and the S&P 500's gain of 1.13%.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is predicted to post an EPS of $3.08, indicating a 4.41% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8 billion, indicating a 13.88% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.33 per share and revenue of $31.8 billion, indicating changes of +10.44% and +15.87%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Eaton has a Forward P/E ratio of 29.97 right now. For comparison, its industry has an average Forward P/E of 22.4, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.57. 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 average PEG ratio for the Manufacturing - Electronics industry stood at 1.67 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton Corporation, PLC (ETN): Free Stock Analysis Report
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