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Eaton (ETN) Outperforms Broader Market: What You Need to Know
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Eaton (ETN - Free Report) closed the most recent trading day at $333.05, moving +1.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.
Shares of the power management company have appreciated by 14.43% over the course of the past month, outperforming the Industrial Products sector's gain of 6.6% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.80, showcasing a 13.36% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.37 billion, up 8.41% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.75 per share and a revenue of $25.14 billion, indicating changes of +17.87% and +8.39%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
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 moved 0.16% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 30.41. This valuation marks a premium compared to its industry's average Forward P/E of 22.97.
It's also important to note that ETN currently trades at a PEG ratio of 2.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 2.03.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Eaton (ETN) Outperforms Broader Market: What You Need to Know
Eaton (ETN - Free Report) closed the most recent trading day at $333.05, moving +1.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.
Shares of the power management company have appreciated by 14.43% over the course of the past month, outperforming the Industrial Products sector's gain of 6.6% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.80, showcasing a 13.36% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.37 billion, up 8.41% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.75 per share and a revenue of $25.14 billion, indicating changes of +17.87% and +8.39%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
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 moved 0.16% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Eaton is currently exchanging hands at a Forward P/E ratio of 30.41. This valuation marks a premium compared to its industry's average Forward P/E of 22.97.
It's also important to note that ETN currently trades at a PEG ratio of 2.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 2.03.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.