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Eaton (ETN) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Eaton (ETN - Free Report) closed at $348.14, marking a +1.69% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the power management company had gained 5.12% over the past month, outpacing the Industrial Products sector's gain of 4.07% and trading in line with the S&P 500.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is expected to report EPS of $2.93, up 7.33% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.92 billion, indicating a 8.92% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.01 per share and a revenue of $27.27 billion, signifying shifts of +11.2% and +9.63%, respectively, from the last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. 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 28.52. Its industry sports an average Forward P/E of 21.81, so one might conclude that Eaton is trading at a premium comparatively.
It is also worth noting that ETN currently has a PEG ratio of 2.65. 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. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Outperforms Broader Market: What You Need to Know
In the latest trading session, Eaton (ETN - Free Report) closed at $348.14, marking a +1.69% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the power management company had gained 5.12% over the past month, outpacing the Industrial Products sector's gain of 4.07% and trading in line with the S&P 500.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is expected to report EPS of $2.93, up 7.33% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $6.92 billion, indicating a 8.92% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.01 per share and a revenue of $27.27 billion, signifying shifts of +11.2% and +9.63%, respectively, from the last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. 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 28.52. Its industry sports an average Forward P/E of 21.81, so one might conclude that Eaton is trading at a premium comparatively.
It is also worth noting that ETN currently has a PEG ratio of 2.65. 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. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.