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Why the Market Dipped But Eaton (ETN) Gained Today
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In the latest trading session, Eaton (ETN - Free Report) closed at $318.50, marking a +0.39% move from the previous day. This move outpaced the S&P 500's daily loss of 1.46%. Elsewhere, the Dow lost 1.24%, while the tech-heavy Nasdaq lost 1.63%.
Coming into today, shares of the power management company had gained 5.65% in the past month. In that same time, the Industrial Products sector gained 3.91%, while the S&P 500 gained 1.6%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.28, showcasing a 21.28% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.91 billion, indicating a 7.77% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.25 per share and a revenue of $24.96 billion, representing changes of +12.39% and +7.6%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Currently, Eaton is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 30.94. This indicates a premium in contrast to its industry's Forward P/E of 21.39.
We can additionally observe that ETN currently boasts a PEG ratio of 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.97 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Eaton (ETN) Gained Today
In the latest trading session, Eaton (ETN - Free Report) closed at $318.50, marking a +0.39% move from the previous day. This move outpaced the S&P 500's daily loss of 1.46%. Elsewhere, the Dow lost 1.24%, while the tech-heavy Nasdaq lost 1.63%.
Coming into today, shares of the power management company had gained 5.65% in the past month. In that same time, the Industrial Products sector gained 3.91%, while the S&P 500 gained 1.6%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.28, showcasing a 21.28% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.91 billion, indicating a 7.77% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.25 per share and a revenue of $24.96 billion, representing changes of +12.39% and +7.6%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Currently, Eaton is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 30.94. This indicates a premium in contrast to its industry's Forward P/E of 21.39.
We can additionally observe that ETN currently boasts a PEG ratio of 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.97 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.