In the latest trading session, Eaton (ETN) closed at $421.77, marking a +2.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.
Shares of the power management company have appreciated by 7.89% over the course of the past month, outperforming the Industrial Products sector's gain of 5.53%, and the S&P 500's gain of 0.29%.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company's upcoming EPS is projected at $3.07, signifying a 4.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8 billion, indicating a 13.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.33 per share and a revenue of $31.8 billion, representing changes of +10.44% and +15.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Eaton. These revisions help to show the ever-changing nature of 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. 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 30.74. This expresses a premium compared to the average Forward P/E of 22.94 of its industry.
It's also important to note that ETN currently trades at a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Eaton Corporation, PLC (ETN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).