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Here's Why Eaton (ETN) Fell More Than Broader Market

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In the latest close session, Eaton (ETN - Free Report) was down 3.44% at $360.60. The stock fell short of the S&P 500, which registered a loss of 0.53% for the day. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq lost 0.93%.

Shares of the power management company have appreciated by 1.34% over the course of the past month, underperforming the Industrial Products sector's gain of 1.64%, and outperforming the S&P 500's gain of 1.13%.

The upcoming earnings release of Eaton will be of great interest to investors. The company's earnings report is expected on November 4, 2025. The company's upcoming EPS is projected at $3.06, signifying a 7.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.06 billion, indicating a 11.23% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $12.08 per share and a revenue of $27.57 billion, demonstrating changes of +11.85% and +10.83%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.03% higher. Eaton currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 30.91. This represents a premium compared to its industry average Forward P/E of 24.34.

We can additionally observe that ETN currently boasts a PEG ratio of 2.67. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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