We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eaton (ETN) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
The most recent trading session ended with Eaton (ETN - Free Report) standing at $333.02, reflecting a +1.36% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.6%.
Heading into today, shares of the power management company had gained 11.9% over the past month, outpacing the Industrial Products sector's gain of 3.68% and the S&P 500's gain of 1.71% in that time.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is forecasted to report an EPS of $2.79, showcasing a 12.96% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.37 billion, indicating an 8.39% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.75 per share and revenue of $25.14 billion, indicating changes of +17.87% and +8.39%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Right now, Eaton possesses a Zacks Rank of #2 (Buy).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 30.57. Its industry sports an average Forward P/E of 22.76, so one might conclude that Eaton is trading at a premium comparatively.
Investors should also note that ETN has a PEG ratio of 2.52 right now. 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 2.03 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eaton (ETN) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Eaton (ETN - Free Report) standing at $333.02, reflecting a +1.36% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.6%.
Heading into today, shares of the power management company had gained 11.9% over the past month, outpacing the Industrial Products sector's gain of 3.68% and the S&P 500's gain of 1.71% in that time.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is forecasted to report an EPS of $2.79, showcasing a 12.96% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.37 billion, indicating an 8.39% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.75 per share and revenue of $25.14 billion, indicating changes of +17.87% and +8.39%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Right now, Eaton possesses a Zacks Rank of #2 (Buy).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 30.57. Its industry sports an average Forward P/E of 22.76, so one might conclude that Eaton is trading at a premium comparatively.
Investors should also note that ETN has a PEG ratio of 2.52 right now. 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 2.03 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.