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Eaton (ETN) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Eaton (ETN - Free Report) closed at $369.69, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.

Prior to today's trading, shares of the power management company had gained 8.69% over the past month. This has outpaced the Industrial Products sector's gain of 5.12% and the S&P 500's gain of 2.69% 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 January 31, 2025. It is anticipated that the company will report an EPS of $2.81, marking a 10.2% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.35 billion, indicating a 6.41% growth compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Eaton should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. Eaton currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Eaton currently has a Forward P/E ratio of 30.77. This denotes a premium relative to the industry's average Forward P/E of 22.96.

It's also important to note that ETN currently trades at a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 1.93 as trading concluded yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 44% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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