Eaton Corporation’s (ETN - Free Report) extensive market reach, consistent cash flow generation, share buybacks, excellent restructuring initiatives and prudent product innovation are expected to drive its performance.
Retaining this Zacks Rank #3 (Hold) stock in your portfolio now is a good idea, given the following positive factors.
Positive Growth Projections: The Zacks Consensus Estimate for earnings is $4.61 on revenues of $20.19 billion for 2017. The bottom line reflects a 9.16% increase year over year and the top-line projection is 2.22% higher. For 2018, the Zacks Consensus Estimate for earnings is pegged at $5.08 on revenues of $20.84 billion. While earnings represent a 10.38% rally, revenues reflect a 3.27% rise.
Eaton has long-term expected earnings per share growth rate of 8.82%.
Strong Return: Eaton’s shares have gained 6.7% year to date compared with 6.3% gain of its industry.
Positive Earnings Surprise History: Eaton surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3.05%.
Growth Drivers
Eaton operates in a number of markets and faces a wide array of competitors in varied niches. The company supplies its products to around 175 countries. This, in a way, provides stability to its revenue generating ability, as the loss of a customer will not have any significant impact on revenues and margins.
Eaton has been investing consistently in its R&D programs to introduce new products. In the first half of 2017, the company’s research and development expenses amounted to $293 million compared with $298 million in the prior-year period.
Benefits of restructuring activities have encouraged the company to expand the program. Eaton has plans to invest $440 million in a restructuring program during the 2015-2018 period, which is expected to create a cumulative benefit of $520 million.
Stocks to Consider
Some better-ranked stocks in the sector are Belden Inc. (BDC - Free Report) , Graco Inc. (GGG - Free Report) and Harsco Corporation . All these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Belden reported positive earnings surprises last four quarters with an average surprise of 3.3%. Its 2017 Zacks Consensus Estimate moved up 7.3% to $5.47 in the last 90 days.
Graco reported positive earnings surprises in last four quarters with an average surprise of 23.95%. Its 2017 Zacks Consensus Estimate moved up 8.4% to $4.52 in the last 90 days.
Harsco Corporation reported positive earnings surprises in last four quarters with an average surprise of 141.2%. Its 2017 Zacks Consensus Estimate moved up 10.5% to 63 cents in the last 90 days.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Eaton Corporation’s (ETN - Free Report) extensive market reach, consistent cash flow generation, share buybacks, excellent restructuring initiatives and prudent product innovation are expected to drive its performance.
Retaining this Zacks Rank #3 (Hold) stock in your portfolio now is a good idea, given the following positive factors.
Positive Growth Projections: The Zacks Consensus Estimate for earnings is $4.61 on revenues of $20.19 billion for 2017. The bottom line reflects a 9.16% increase year over year and the top-line projection is 2.22% higher. For 2018, the Zacks Consensus Estimate for earnings is pegged at $5.08 on revenues of $20.84 billion. While earnings represent a 10.38% rally, revenues reflect a 3.27% rise.
Eaton has long-term expected earnings per share growth rate of 8.82%.
Strong Return: Eaton’s shares have gained 6.7% year to date compared with 6.3% gain of its industry.
Positive Earnings Surprise History: Eaton surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3.05%.
Growth Drivers
Eaton operates in a number of markets and faces a wide array of competitors in varied niches. The company supplies its products to around 175 countries. This, in a way, provides stability to its revenue generating ability, as the loss of a customer will not have any significant impact on revenues and margins.
Eaton has been investing consistently in its R&D programs to introduce new products. In the first half of 2017, the company’s research and development expenses amounted to $293 million compared with $298 million in the prior-year period.
Benefits of restructuring activities have encouraged the company to expand the program. Eaton has plans to invest $440 million in a restructuring program during the 2015-2018 period, which is expected to create a cumulative benefit of $520 million.
Stocks to Consider
Some better-ranked stocks in the sector are Belden Inc. (BDC - Free Report) , Graco Inc. (GGG - Free Report) and Harsco Corporation . All these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Belden reported positive earnings surprises last four quarters with an average surprise of 3.3%. Its 2017 Zacks Consensus Estimate moved up 7.3% to $5.47 in the last 90 days.
Graco reported positive earnings surprises in last four quarters with an average surprise of 23.95%. Its 2017 Zacks Consensus Estimate moved up 8.4% to $4.52 in the last 90 days.
Harsco Corporation reported positive earnings surprises in last four quarters with an average surprise of 141.2%. Its 2017 Zacks Consensus Estimate moved up 10.5% to 63 cents in the last 90 days.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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