Eaton (ETN) ended the recent trading session at $371.27, demonstrating a +2.18% change from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.48%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 0.94%.
The stock of power management company has risen by 4.95% in the past month, leading the Industrial Products sector’s gain of 1.25% and the S&P 500’s gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.06, showcasing a 7.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.06 billion, indicating a 11.34% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.08 per share and revenue of $27.57 billion. These totals would mark changes of +11.85% and +10.8%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.17% higher within the past month. Eaton is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.08. Its industry sports an average Forward P/E of 22.82, so one might conclude that Eaton is trading at a premium comparatively.
We can also see that ETN currently has a PEG ratio of 2.6. 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 Manufacturing – Electronics industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Manufacturing – Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% of all 250+ industries.