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Eaton (ETN - Free Report) closed the most recent trading day at $305.80, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The power management company's shares have seen an increase of 0.3% over the last month, surpassing the Industrial Products sector's loss of 0.96% and falling behind the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's earnings per share (EPS) are projected to be $2.79, reflecting a 12.96% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.37 billion, showing an 8.39% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.74 per share and a revenue of $25.14 billion, indicating changes of +17.76% and +8.39%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Eaton. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. Eaton is currently a Zacks Rank #2 (Buy).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 28.25. This expresses a premium compared to the average Forward P/E of 21.1 of its industry.
Also, we should mention that ETN has a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 26, this industry ranks in the top 11% of all industries, numbering over 250.
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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Why Eaton (ETN) Outpaced the Stock Market Today
Eaton (ETN - Free Report) closed the most recent trading day at $305.80, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The power management company's shares have seen an increase of 0.3% over the last month, surpassing the Industrial Products sector's loss of 0.96% and falling behind the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's earnings per share (EPS) are projected to be $2.79, reflecting a 12.96% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.37 billion, showing an 8.39% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.74 per share and a revenue of $25.14 billion, indicating changes of +17.76% and +8.39%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Eaton. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. Eaton is currently a Zacks Rank #2 (Buy).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 28.25. This expresses a premium compared to the average Forward P/E of 21.1 of its industry.
Also, we should mention that ETN has a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 26, this industry ranks in the top 11% of all industries, numbering over 250.
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.