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If You Invested $1000 in Eaton a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Eaton (ETN - Free Report) ten years ago? It may not have been easy to hold on to ETN for all that time, but if you did, how much would your investment be worth today?
Eaton's Business In-Depth
With that in mind, let's take a look at Eaton's main business drivers.
Dublin, Ireland-based Eaton Corporation plc is a diversified power management company and a global technology leader in electrical components and systems. It sells products in more than 175 countries and has in excess of 85,000 employees. The company was founded in 1911.
Eaton’s current reportable segments post closure of the Hydraulics segment on Aug 2, 2021, are Electrical Americas, Electrical Global, Aerospace, Vehicle and eMobility.
The Electrical Americas segment includes sales contracts that are primarily for electrical and industrial components, power distribution and assemblies, residential products, single and three-phase power quality, wiring devices, circuit protection, utility power distribution, power reliability equipment, as well as services that are primarily produced and sold in North and South America. The Electrical Global segment consists of the same activities as mentioned in Electrical Americas but is primarily produced and sold outside of North and South America.
The Vehicle segment includes the Truck and Automotive subsegments. The truck segment designs, manufactures and markets powertrain systems and other components for commercial vehicle markets. The aerospace segment is a supplier of aerospace fuel and hydraulic and pneumatic systems for commercial and military use.
The eMobility segment focuses on two technologies within electric vehicles, namely Power electronics & conversion and Power distribution & circuit protection.
Eaton's segments — Electrical Americas, Electrical Global, Aerospace, Vehicle and eMobility — contributed 44.8%, 25.4%, 15%, 12% and 2.8%, respectively, to 2023 revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Eaton a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2014 would be worth $3,816.28, or a gain of 281.63%, as of February 19, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.24% and the price of gold increased 47.57% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ETN.
Eaton’s fourth-quarter earnings and revenues were better than expected. Research and development are allowing the company to develop new products to provide efficient power management solutions. It will benefit from improving end-market conditions, increasing demand from the new AI data center and contributions from its organic assets. Eaton is expanding via acquisitions and its rising backlog shows demand for its products. Its strategy to manufacture in the region of its end market has helped it cut costs. Its shares have outperformed the industry in the last year. Yet, Eaton’s global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.
Over the past four weeks, shares have rallied 13.46%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Eaton a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Eaton (ETN - Free Report) ten years ago? It may not have been easy to hold on to ETN for all that time, but if you did, how much would your investment be worth today?
Eaton's Business In-Depth
With that in mind, let's take a look at Eaton's main business drivers.
Dublin, Ireland-based Eaton Corporation plc is a diversified power management company and a global technology leader in electrical components and systems. It sells products in more than 175 countries and has in excess of 85,000 employees. The company was founded in 1911.
Eaton’s current reportable segments post closure of the Hydraulics segment on Aug 2, 2021, are Electrical Americas, Electrical Global, Aerospace, Vehicle and eMobility.
The Electrical Americas segment includes sales contracts that are primarily for electrical and industrial components, power distribution and assemblies, residential products, single and three-phase power quality, wiring devices, circuit protection, utility power distribution, power reliability equipment, as well as services that are primarily produced and sold in North and South America. The Electrical Global segment consists of the same activities as mentioned in Electrical Americas but is primarily produced and sold outside of North and South America.
The Vehicle segment includes the Truck and Automotive subsegments. The truck segment designs, manufactures and markets powertrain systems and other components for commercial vehicle markets. The aerospace segment is a supplier of aerospace fuel and hydraulic and pneumatic systems for commercial and military use.
The eMobility segment focuses on two technologies within electric vehicles, namely Power electronics & conversion and Power distribution & circuit protection.
Eaton's segments — Electrical Americas, Electrical Global, Aerospace, Vehicle and eMobility — contributed 44.8%, 25.4%, 15%, 12% and 2.8%, respectively, to 2023 revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Eaton a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2014 would be worth $3,816.28, or a gain of 281.63%, as of February 19, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.24% and the price of gold increased 47.57% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ETN.
Eaton’s fourth-quarter earnings and revenues were better than expected. Research and development are allowing the company to develop new products to provide efficient power management solutions. It will benefit from improving end-market conditions, increasing demand from the new AI data center and contributions from its organic assets. Eaton is expanding via acquisitions and its rising backlog shows demand for its products. Its strategy to manufacture in the region of its end market has helped it cut costs. Its shares have outperformed the industry in the last year. Yet, Eaton’s global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.
Over the past four weeks, shares have rallied 13.46%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.