Here’s Why Eaton (ETN) is a Strong Momentum Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Different than value or growth investors, momentum-oriented investors live by the saying “the trend is your friend.” This investing style is all about taking advantage of upward or downward trends in a stock’s price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Dublin, Ireland-based Eaton Corporation plc is a diversified power management company and a global technology leader in electrical components and systems. It sells products in more than 175 countries and has in excess of 85,000 employees. The company was founded in 1911.

ETN boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Eaton has seen some interesting price action recently; the stock is up 9.5% over the past one week and up 7.4% over the past four weeks. And in the last one-year period, ETN has gained 65.3%. As for the stock’s trading volume, 1,940,688.38 shares on average were traded over the last 20 days.

A company’s earnings performance is important for momentum investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for ETN, while the Zacks Consensus Estimate has increased $0.04 to $10.78 per share. ETN also boasts an average earnings surprise of 3.6%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding ETN to their portfolios.

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Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

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