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Eaton (ETN) Advances While Market Declines: Some Information for Investors

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Eaton (ETN - Free Report) ended the recent trading session at $330.60, demonstrating a +0.51% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.36%.

Shares of the power management company have appreciated by 10.49% over the course of the past month, outperforming the Industrial Products sector's gain of 6.13% and the S&P 500's gain of 2.06%.

The upcoming earnings release of Eaton will be of great interest to investors. The company is predicted to post an EPS of $2.79, indicating a 12.96% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.37 billion, up 8.39% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.74 per share and a revenue of $25.14 billion, demonstrating changes of +17.76% and +8.39%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% increase. As of now, Eaton holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Eaton is holding a Forward P/E ratio of 30.61. This indicates a premium in contrast to its industry's Forward P/E of 22.52.

One should further note that ETN currently holds a PEG ratio of 2.52. 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 2.05.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ETN in the coming trading sessions, be sure to utilize Zacks.com.


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