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Eaton (ETN) Exceeds Market Returns: Some Facts to Consider
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Eaton (ETN - Free Report) ended the recent trading session at $371.27, demonstrating a +2.18% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.48%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 0.94%.
The stock of power management company has risen by 4.95% in the past month, leading the Industrial Products sector's gain of 1.25% and the S&P 500's gain of 2.46%.
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 $3.06, showcasing a 7.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.06 billion, indicating a 11.34% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.08 per share and revenue of $27.57 billion. These totals would mark changes of +11.85% and +10.8%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Eaton is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.08. Its industry sports an average Forward P/E of 22.82, so one might conclude that Eaton is trading at a premium comparatively.
We can also see that ETN currently has a PEG ratio of 2.6. 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 Manufacturing - Electronics industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% 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.
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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Eaton (ETN) Exceeds Market Returns: Some Facts to Consider
Eaton (ETN - Free Report) ended the recent trading session at $371.27, demonstrating a +2.18% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.48%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 0.94%.
The stock of power management company has risen by 4.95% in the past month, leading the Industrial Products sector's gain of 1.25% and the S&P 500's gain of 2.46%.
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 $3.06, showcasing a 7.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.06 billion, indicating a 11.34% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.08 per share and revenue of $27.57 billion. These totals would mark changes of +11.85% and +10.8%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Eaton is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Eaton currently has a Forward P/E ratio of 30.08. Its industry sports an average Forward P/E of 22.82, so one might conclude that Eaton is trading at a premium comparatively.
We can also see that ETN currently has a PEG ratio of 2.6. 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 Manufacturing - Electronics industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.