Eaton (ETN) ended the recent trading session at $395.17, demonstrating a -1.67% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
Shares of the power management company witnessed a gain of 10.43% over the previous month, beating the performance of the Industrial Products sector with its gain of 8.08%, and the S&P 500's gain of 5.15%.
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 $2.75, reflecting a 1.1% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.09 billion, indicating a 11.11% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.31 per share and a revenue of $30.34 billion, signifying shifts of +10.27% and +10.55%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.19. This valuation marks a premium compared to its industry average Forward P/E of 25.94.
We can also see that ETN currently has a PEG ratio of 2.77. 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 currently had an average PEG ratio of 1.95 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Eaton Corporation, PLC (ETN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).