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Eaton (ETN) Surpasses Market Returns: Some Facts Worth Knowing

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Eaton (ETN - Free Report) closed the most recent trading day at $297.79, moving +1.68% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.

Shares of the power management company have depreciated by 6.71% over the course of the past month, underperforming the Industrial Products sector's gain of 2.95% and the S&P 500's loss of 1.16%.

Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 1, 2024. The company is predicted to post an EPS of $2.61, indicating a 18.1% growth compared to the equivalent quarter last year. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.56 per share and revenue of $25.13 billion, indicating changes of +15.79% and +8.33%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 27.74. This denotes a premium relative to the industry's average Forward P/E of 21.63.

It is also worth noting that ETN currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN's industry had an average PEG ratio of 2.05 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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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