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Eaton (ETN) Ascends While Market Falls: Some Facts to Note

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Eaton (ETN - Free Report) closed at $314.37 in the latest trading session, marking a +0.16% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.95%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq lost 0.84%.

The power management company's shares have seen an increase of 5.42% over the last month, surpassing the Industrial Products sector's gain of 4.45% and the S&P 500's gain of 1.78%.

Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.28, indicating a 21.28% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.91 billion, reflecting a 7.77% rise from the equivalent quarter last year.

ETN's full-year Zacks Consensus Estimates are calling for earnings of $10.25 per share and revenue of $24.96 billion. These results would represent year-over-year changes of +12.39% and +7.6%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. At present, Eaton boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Eaton is currently trading at a Forward P/E ratio of 30.61. This expresses a premium compared to the average Forward P/E of 21.25 of its industry.

It is also worth noting that ETN currently has a PEG ratio of 2.61. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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