We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Eaton (ETN) Declines More Than Market: Some Information for Investors
Read MoreHide Full Article
Eaton (ETN - Free Report) ended the recent trading session at $323.66, demonstrating a -2.02% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The power management company's shares have seen an increase of 1.08% over the last month, not keeping up with the Industrial Products sector's gain of 1.95% and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's earnings per share (EPS) are projected to be $2.93, reflecting a 7.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.92 billion, up 8.92% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.01 per share and revenue of $27.27 billion. These totals would mark changes of +11.2% and +9.63%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Eaton presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 27.51. For comparison, its industry has an average Forward P/E of 23.03, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.56 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 1.85 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eaton (ETN) Declines More Than Market: Some Information for Investors
Eaton (ETN - Free Report) ended the recent trading session at $323.66, demonstrating a -2.02% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The power management company's shares have seen an increase of 1.08% over the last month, not keeping up with the Industrial Products sector's gain of 1.95% and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's earnings per share (EPS) are projected to be $2.93, reflecting a 7.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.92 billion, up 8.92% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.01 per share and revenue of $27.27 billion. These totals would mark changes of +11.2% and +9.63%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Eaton presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 27.51. For comparison, its industry has an average Forward P/E of 23.03, which means Eaton is trading at a premium to the group.
Investors should also note that ETN has a PEG ratio of 2.56 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 1.85 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.