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Eaton (ETN) Rises As Market Takes a Dip: Key Facts

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Eaton (ETN - Free Report) closed at $335.64 in the latest trading session, marking a +0.16% move from the prior day. This change outpaced the S&P 500's 0.09% loss on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.

The power management company's stock has dropped by 7.03% in the past month, falling short of the Industrial Products sector's loss of 4.58% and the S&P 500's loss of 0.29%.

Market participants will be closely following the financial results of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $2.82, marking a 10.59% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.37 billion, indicating a 6.72% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.80 per share and revenue of $25.01 billion, which would represent changes of +18.42% and +7.8%, respectively, from the prior year.

Any recent changes to analyst estimates for Eaton should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Right now, Eaton possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Eaton currently has a Forward P/E ratio of 31.03. Its industry sports an average Forward P/E of 22.67, so one might conclude that Eaton is trading at a premium comparatively.

We can additionally observe that ETN currently boasts a PEG ratio of 2.54. 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. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 2.06.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 42% of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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