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Here's Why Eaton (ETN) Gained But Lagged the Market Today
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The most recent trading session ended with Eaton (ETN - Free Report) standing at $345.29, reflecting a +0.1% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.76%.
The power management company's shares have seen an increase of 4.99% over the last month, surpassing the Industrial Products sector's loss of 1.98% and the S&P 500's gain of 1.47%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 31, 2024. The company's upcoming EPS is projected at $2.80, signifying a 13.36% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 8.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.75 per share and a revenue of $25.12 billion, representing changes of +17.87% and +8.3%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, Eaton holds a Zacks Rank of #2 (Buy).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 32.08. For comparison, its industry has an average Forward P/E of 22.34, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.63 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 2.01 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Here's Why Eaton (ETN) Gained But Lagged the Market Today
The most recent trading session ended with Eaton (ETN - Free Report) standing at $345.29, reflecting a +0.1% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.76%.
The power management company's shares have seen an increase of 4.99% over the last month, surpassing the Industrial Products sector's loss of 1.98% and the S&P 500's gain of 1.47%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 31, 2024. The company's upcoming EPS is projected at $2.80, signifying a 13.36% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 8.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.75 per share and a revenue of $25.12 billion, representing changes of +17.87% and +8.3%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, Eaton holds a Zacks Rank of #2 (Buy).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 32.08. For comparison, its industry has an average Forward P/E of 22.34, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.63 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 2.01 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.