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Eaton (ETN) Falls More Steeply Than Broader Market: What Investors Need to Know
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The most recent trading session ended with Eaton (ETN - Free Report) standing at $323.24, reflecting a -1.33% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.
Prior to today's trading, shares of the power management company had lost 2.56% over the past month. This has was narrower than the Industrial Products sector's loss of 4.2% and lagged the S&P 500's gain of 3.59% in that time.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. On that day, Eaton is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 18.1%. Our most recent consensus estimate is calling for quarterly revenue of $6.35 billion, up 8.2% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.56 per share and revenue of $25.15 billion. These totals would mark changes of +15.79% and +8.44%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. Recent revisions tend to reflect the latest 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Eaton is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 31.03. Its industry sports an average Forward P/E of 22.56, so one might conclude that Eaton is trading at a premium comparatively.
Also, we should mention that ETN has a PEG ratio of 2.74. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.89.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Eaton (ETN) Falls More Steeply Than Broader Market: What Investors Need to Know
The most recent trading session ended with Eaton (ETN - Free Report) standing at $323.24, reflecting a -1.33% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.
Prior to today's trading, shares of the power management company had lost 2.56% over the past month. This has was narrower than the Industrial Products sector's loss of 4.2% and lagged the S&P 500's gain of 3.59% in that time.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. On that day, Eaton is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 18.1%. Our most recent consensus estimate is calling for quarterly revenue of $6.35 billion, up 8.2% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.56 per share and revenue of $25.15 billion. These totals would mark changes of +15.79% and +8.44%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. Recent revisions tend to reflect the latest 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Eaton is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 31.03. Its industry sports an average Forward P/E of 22.56, so one might conclude that Eaton is trading at a premium comparatively.
Also, we should mention that ETN has a PEG ratio of 2.74. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.89.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.