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Why the Market Dipped But Eaton (ETN) Gained Today
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Eaton (ETN - Free Report) closed the latest trading day at $311.89, indicating a +0.91% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Heading into today, shares of the power management company had lost 4.38% over the past month, lagging the Industrial Products sector's gain of 2.91% and the S&P 500's gain of 1.08% in that time.
The upcoming earnings release of Eaton will be of great interest to investors. The company's earnings report is expected on August 1, 2024. On that day, Eaton is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 18.1%. Alongside, our most recent consensus estimate is anticipating revenue of $6.35 billion, indicating an 8.23% upward movement from the same quarter last year.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $10.56 per share and revenue of $25.13 billion. These results would represent year-over-year changes of +15.79% and +8.33%, respectively.
It is also important to note the recent changes to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 29.28. This represents a premium compared to its industry's average Forward P/E of 22.9.
Meanwhile, ETN's PEG ratio is currently 2.59. 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 2.02.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Why the Market Dipped But Eaton (ETN) Gained Today
Eaton (ETN - Free Report) closed the latest trading day at $311.89, indicating a +0.91% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Heading into today, shares of the power management company had lost 4.38% over the past month, lagging the Industrial Products sector's gain of 2.91% and the S&P 500's gain of 1.08% in that time.
The upcoming earnings release of Eaton will be of great interest to investors. The company's earnings report is expected on August 1, 2024. On that day, Eaton is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 18.1%. Alongside, our most recent consensus estimate is anticipating revenue of $6.35 billion, indicating an 8.23% upward movement from the same quarter last year.
ETN's full-year Zacks Consensus Estimates are calling for earnings of $10.56 per share and revenue of $25.13 billion. These results would represent year-over-year changes of +15.79% and +8.33%, respectively.
It is also important to note the recent changes to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 29.28. This represents a premium compared to its industry's average Forward P/E of 22.9.
Meanwhile, ETN's PEG ratio is currently 2.59. 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 2.02.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.