Eaton (ETN) ended the recent trading session at $365.90, demonstrating a +1.62% change from the preceding day’s closing price. This change outpaced the S&P 500’s 0.05% loss on the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, added 0.45%.
The stock of power management company has risen by 1.4% in the past month, lagging the Industrial Products sector’s gain of 2.6% and the S&P 500’s gain of 3.44%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. In that report, analysts expect Eaton to post earnings of $3.06 per share. This would mark year-over-year growth of 7.75%. Alongside, our most recent consensus estimate is anticipating revenue of $7.06 billion, indicating a 11.3% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.08 per share and a revenue of $27.56 billion, demonstrating changes of +11.85% and +10.79%, respectively, from the preceding year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% increase. Eaton is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 29.81. This valuation marks a premium compared to its industry average Forward P/E of 23.42.
We can additionally observe that ETN currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing – Electronics industry held an average PEG ratio of 1.83.
The Manufacturing – Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.