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Eaton (ETN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Eaton (ETN - Free Report) closed the latest trading day at $336.94, indicating a -0.39% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the power management company have appreciated by 13.84% over the course of the past month, outperforming the Industrial Products sector's gain of 8.18% and the S&P 500's gain of 5.94%.
The upcoming earnings release of Eaton will be of great interest to investors. It is anticipated that the company will report an EPS of $2.80, marking a 13.36% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.37 billion, indicating an 8.31% upward movement from the same quarter last year.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $25.13 billion. These results would represent year-over-year changes of +17.87% and +8.34%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Eaton currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 31.45. This denotes a premium relative to the industry's average Forward P/E of 23.17.
It's also important to note that ETN currently trades at a PEG ratio of 2.58. 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 the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 2.07.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton (ETN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Eaton (ETN - Free Report) closed the latest trading day at $336.94, indicating a -0.39% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the power management company have appreciated by 13.84% over the course of the past month, outperforming the Industrial Products sector's gain of 8.18% and the S&P 500's gain of 5.94%.
The upcoming earnings release of Eaton will be of great interest to investors. It is anticipated that the company will report an EPS of $2.80, marking a 13.36% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.37 billion, indicating an 8.31% upward movement from the same quarter last year.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $25.13 billion. These results would represent year-over-year changes of +17.87% and +8.34%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Eaton currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 31.45. This denotes a premium relative to the industry's average Forward P/E of 23.17.
It's also important to note that ETN currently trades at a PEG ratio of 2.58. 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 the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 2.07.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.