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Eaton (ETN) Stock Falls Amid Market Uptick: What Investors Need to Know
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Eaton (ETN - Free Report) closed at $348.18 in the latest trading session, marking a -0.09% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.
Prior to today's trading, shares of the power management company had gained 5.95% over the past month. This has outpaced the Industrial Products sector's gain of 5.02% and the S&P 500's gain of 3.76% in that time.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on October 31, 2024. The company is expected to report EPS of $2.80, up 13.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 8.29% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.75 per share and revenue of $25.12 billion, indicating changes of +17.87% and +8.3%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. At present, Eaton boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 32.41. This valuation marks a premium compared to its industry's average Forward P/E of 23.57.
We can additionally observe that ETN currently boasts a PEG ratio of 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton (ETN) Stock Falls Amid Market Uptick: What Investors Need to Know
Eaton (ETN - Free Report) closed at $348.18 in the latest trading session, marking a -0.09% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.
Prior to today's trading, shares of the power management company had gained 5.95% over the past month. This has outpaced the Industrial Products sector's gain of 5.02% and the S&P 500's gain of 3.76% in that time.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on October 31, 2024. The company is expected to report EPS of $2.80, up 13.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 8.29% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.75 per share and revenue of $25.12 billion, indicating changes of +17.87% and +8.3%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. At present, Eaton boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 32.41. This valuation marks a premium compared to its industry's average Forward P/E of 23.57.
We can additionally observe that ETN currently boasts a PEG ratio of 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.