We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much a $1000 Investment in Eaton Made 10 Years Ago Would Be Worth Today
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Eaton ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2014 would be worth $4,343.01, or a 334.30% gain, as of March 22, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 180.82% and gold's return of 57.21% over the same time frame.
Analysts are anticipating more upside for ETN.
Eaton’s ongoing 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. It is expanding via acquisitions and its rising backlog shows demand for its products. Our model expects revenues to increase in 2024-2026 period. 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.
The stock is up 10.87% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much a $1000 Investment in Eaton Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Eaton ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2014 would be worth $4,343.01, or a 334.30% gain, as of March 22, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 180.82% and gold's return of 57.21% over the same time frame.
Analysts are anticipating more upside for ETN.
Eaton’s ongoing 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. It is expanding via acquisitions and its rising backlog shows demand for its products. Our model expects revenues to increase in 2024-2026 period. 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.
The stock is up 10.87% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.