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Are Industrial Products Stocks Lagging Eaton (ETN) This Year?

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For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Eaton (ETN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Eaton is one of 219 companies in the Industrial Products group. The Industrial Products group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Eaton is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ETN's full-year earnings has moved 1.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ETN has returned 36.9% so far this year. Meanwhile, the Industrial Products sector has returned an average of 12.1% on a year-to-date basis. As we can see, Eaton is performing better than its sector in the calendar year.

One other Industrial Products stock that has outperformed the sector so far this year is Graham (GHM - Free Report) . The stock is up 59.9% year-to-date.

For Graham, the consensus EPS estimate for the current year has increased 17.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Eaton belongs to the Manufacturing - Electronics industry, a group that includes 16 individual stocks and currently sits at #23 in the Zacks Industry Rank. On average, stocks in this group have gained 14.9% this year, meaning that ETN is performing better in terms of year-to-date returns.

In contrast, Graham falls under the Manufacturing - General Industrial industry. Currently, this industry has 44 stocks and is ranked #176. Since the beginning of the year, the industry has moved +11%.

Investors with an interest in Industrial Products stocks should continue to track Eaton and Graham. These stocks will be looking to continue their solid performance.


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