Eaton (ETN) Stock Dips While Market Gains: Key Facts
The most recent trading session ended with Eaton (ETN) standing at $318.71, reflecting a -0.08% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the power management company had lost 1.24% in the past month. In that same time, the Industrial Products sector lost 1.42%, while the S&P 500 gained 4.34%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. On that day, Eaton is projected to report earnings of $2.60 per share, which would represent year-over-year growth of 17.65%. At the same time, our most recent consensus estimate is projecting a revenue of $6.34 billion, reflecting an 8.16% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.55 per share and revenue of $25.13 billion, which would represent changes of +15.68% and +8.33%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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% downward. Eaton presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 30.23. Its industry sports an average Forward P/E of 22.53, so one might conclude that Eaton is trading at a premium comparatively.
We can also see that ETN currently has a PEG ratio of 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ETN's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
