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Eaton (ETN) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Eaton (ETN - Free Report) ending at $285.72, denoting a -1.06% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq appreciated by 0.25%.
Shares of the power management company witnessed a gain of 3.99% over the previous month, beating the performance of the Industrial Products sector with its gain of 2.49% and the S&P 500's gain of 3.42%.
The upcoming earnings release of Eaton will be of great interest to investors. The company's upcoming EPS is projected at $2.79, signifying a 12.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.37 billion, indicating an 8.35% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.71 per share and a revenue of $25.13 billion, demonstrating changes of +17.43% and +8.34%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. 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 26.97. This denotes a premium relative to the industry's average Forward P/E of 21.53.
It's also important to note that ETN currently trades at a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Eaton (ETN) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Eaton (ETN - Free Report) ending at $285.72, denoting a -1.06% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq appreciated by 0.25%.
Shares of the power management company witnessed a gain of 3.99% over the previous month, beating the performance of the Industrial Products sector with its gain of 2.49% and the S&P 500's gain of 3.42%.
The upcoming earnings release of Eaton will be of great interest to investors. The company's upcoming EPS is projected at $2.79, signifying a 12.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.37 billion, indicating an 8.35% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.71 per share and a revenue of $25.13 billion, demonstrating changes of +17.43% and +8.34%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. 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 26.97. This denotes a premium relative to the industry's average Forward P/E of 21.53.
It's also important to note that ETN currently trades at a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.