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Eaton (ETN) Hits 52-Week High: What's Driving the Stock?
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Eaton Corporation plc (ETN - Free Report) touched a new 52-week high of $193.9 on Jun 13. The stock closed the trading session at $193.86, up 2.27% from the previous day’s $189.55. The company’s ongoing expansion of eMobility business in Europe continues to boost its share price.
ETN has gained 23.5% year to date compared with the Zacks Manufacturing-Electronics industry’s growth of 8.3%. The Zacks Industrial Products sector grew 6.2% during the same time frame. The Zacks S&P 500 Composite increased 14.8%.
Eaton currently carries a Zacks Rank #2 (Buy). It has been benefiting from strategic acquisitions, restructuring actions, research and development (R&D) programs, and product innovation.
Image Source: Zacks Investment Research
What's Driving Eaton’s Outperformance?
The company has been recording solid earnings and revenue growth over the past few quarters. In the first quarter of 2023, it recorded earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate by 5.6%. The bottom line also increased 16% year over year.
Revenues totaled $5,483 million in the same quarter, which outpaced the Zacks Consensus Estimate of $5,233 million by 4.8%. The top line improved 13.2% from the year-ago period’s level.
Eaton has been investing consistently in R&D programs to introduce new products, including power management solutions that will help reduce energy consumption and carbon emissions. The company has laid out a 10-year plan that includes $3 billion investment in R&D programs.
ETN invested $665 million in R&D programs in 2022, up 8% year over year. In the first quarter of 2023, the company invested $179 million in R&D activities, up 8.5% from that recorded in the year-ago period.
Eaton won a large follow-on order for the U.S. network of electric vehicle (EV) charging stations with 150 sites. The company’s expertise can help it grab a larger market share in the fast-expanding EV charging business in the United States.
Courtesy of ongoing improvement in the end-market conditions, ETN increased its organic growth guidance from 7-9% to 9-11% for 2023. It also raised its guided range for adjusted earnings per share to $8.30-$8.50 from $8.04-$8.44. Capital expenditure is anticipated to be $700 million, up from the previously projected $630 million.
EMR’s long-term earnings growth rate is 9.1%. It delivered an average earnings surprise of 4.52% in the last four quarters.
ABBNY’s long-term earnings growth rate is 6.2%. The Zacks Consensus Estimate for 2023 earnings is pinned at $1.68 per share, indicating year-over-year growth of 27.3%.
FELE’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.35 per share, implying year-over-year improvement of 8.8%.
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Eaton (ETN) Hits 52-Week High: What's Driving the Stock?
Eaton Corporation plc (ETN - Free Report) touched a new 52-week high of $193.9 on Jun 13. The stock closed the trading session at $193.86, up 2.27% from the previous day’s $189.55. The company’s ongoing expansion of eMobility business in Europe continues to boost its share price.
ETN has gained 23.5% year to date compared with the Zacks Manufacturing-Electronics industry’s growth of 8.3%. The Zacks Industrial Products sector grew 6.2% during the same time frame. The Zacks S&P 500 Composite increased 14.8%.
Eaton currently carries a Zacks Rank #2 (Buy). It has been benefiting from strategic acquisitions, restructuring actions, research and development (R&D) programs, and product innovation.
Image Source: Zacks Investment Research
What's Driving Eaton’s Outperformance?
The company has been recording solid earnings and revenue growth over the past few quarters. In the first quarter of 2023, it recorded earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate by 5.6%. The bottom line also increased 16% year over year.
Revenues totaled $5,483 million in the same quarter, which outpaced the Zacks Consensus Estimate of $5,233 million by 4.8%. The top line improved 13.2% from the year-ago period’s level.
Eaton has been investing consistently in R&D programs to introduce new products, including power management solutions that will help reduce energy consumption and carbon emissions. The company has laid out a 10-year plan that includes $3 billion investment in R&D programs.
ETN invested $665 million in R&D programs in 2022, up 8% year over year. In the first quarter of 2023, the company invested $179 million in R&D activities, up 8.5% from that recorded in the year-ago period.
Eaton won a large follow-on order for the U.S. network of electric vehicle (EV) charging stations with 150 sites. The company’s expertise can help it grab a larger market share in the fast-expanding EV charging business in the United States.
Courtesy of ongoing improvement in the end-market conditions, ETN increased its organic growth guidance from 7-9% to 9-11% for 2023. It also raised its guided range for adjusted earnings per share to $8.30-$8.50 from $8.04-$8.44. Capital expenditure is anticipated to be $700 million, up from the previously projected $630 million.
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Emerson Electric Co. (EMR - Free Report) , ABB (ABBNY - Free Report) and Franklin Electric Co. (FELE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EMR’s long-term earnings growth rate is 9.1%. It delivered an average earnings surprise of 4.52% in the last four quarters.
ABBNY’s long-term earnings growth rate is 6.2%. The Zacks Consensus Estimate for 2023 earnings is pinned at $1.68 per share, indicating year-over-year growth of 27.3%.
FELE’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.35 per share, implying year-over-year improvement of 8.8%.