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Eaton (ETN) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Eaton (ETN - Free Report) closed at $331.23, marking a -1.08% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.51%.
The stock of power management company has risen by 4.3% in the past month, leading the Industrial Products sector's gain of 1.77% and the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.93, marking a 7.33% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.92 billion, indicating a 8.92% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.01 per share and revenue of $27.27 billion, which would represent changes of +11.2% and +9.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Eaton is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 27.89. Its industry sports an average Forward P/E of 21.77, so one might conclude that Eaton is trading at a premium comparatively.
Meanwhile, ETN's PEG ratio is currently 2.6. 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. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.82.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton (ETN) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Eaton (ETN - Free Report) closed at $331.23, marking a -1.08% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.51%.
The stock of power management company has risen by 4.3% in the past month, leading the Industrial Products sector's gain of 1.77% and the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.93, marking a 7.33% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.92 billion, indicating a 8.92% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.01 per share and revenue of $27.27 billion, which would represent changes of +11.2% and +9.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Eaton is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 27.89. Its industry sports an average Forward P/E of 21.77, so one might conclude that Eaton is trading at a premium comparatively.
Meanwhile, ETN's PEG ratio is currently 2.6. 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. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.82.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.