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Eaton (ETN) Declines More Than Market: Some Information for Investors
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Eaton (ETN - Free Report) ended the recent trading session at $328.96, demonstrating a -1.22% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.39%.
Prior to today's trading, shares of the power management company had gained 10.6% over the past month. This has outpaced the Industrial Products sector's gain of 5.55% and the S&P 500's gain of 2.43% in that time.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $2.79, marking a 12.96% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.37 billion, indicating an 8.39% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $10.75 per share and a revenue of $25.14 billion, demonstrating changes of +17.87% and +8.39%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Eaton is currently a Zacks Rank #2 (Buy).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 30.99. For comparison, its industry has an average Forward P/E of 23.48, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Eaton (ETN) Declines More Than Market: Some Information for Investors
Eaton (ETN - Free Report) ended the recent trading session at $328.96, demonstrating a -1.22% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.39%.
Prior to today's trading, shares of the power management company had gained 10.6% over the past month. This has outpaced the Industrial Products sector's gain of 5.55% and the S&P 500's gain of 2.43% in that time.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $2.79, marking a 12.96% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.37 billion, indicating an 8.39% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $10.75 per share and a revenue of $25.14 billion, demonstrating changes of +17.87% and +8.39%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Eaton is currently a Zacks Rank #2 (Buy).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 30.99. For comparison, its industry has an average Forward P/E of 23.48, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.