Eaton (ETN – Free Report) closed the most recent trading day at $297.23, moving +1.23% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.64%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.31%.
The power management company’s stock has dropped by 5.03% in the past month, exceeding the Industrial Products sector’s loss of 6.06% and the S&P 500’s loss of 7.69%.
The upcoming earnings release of Eaton will be of great interest to investors. The company is forecasted to report an EPS of $2.70, showcasing a 12.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.27 billion, indicating a 5.43% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.03 per share and a revenue of $26.74 billion, representing changes of +11.39% and +7.48%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Eaton is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Eaton is currently being traded at a Forward P/E ratio of 24.4. For comparison, its industry has an average Forward P/E of 23.47, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.51 right now. 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. The average PEG ratio for the Manufacturing – Electronics industry stood at 1.88 at the close of the market yesterday.
The Manufacturing – Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 18% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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