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Eaton (ETN) Ascends While Market Falls: Some Facts to Note
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Eaton (ETN - Free Report) ended the recent trading session at $343.39, demonstrating a +1.7% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.
The stock of power management company has fallen by 9.66% in the past month, lagging the Industrial Products sector's gain of 1.35% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is expected to report EPS of $3.35, up 18.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.13 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.09 per share and a revenue of $27.54 billion, demonstrating changes of +11.94% and +10.71%, respectively, from the preceding year.
It is also important to note the recent changes 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. As of now, Eaton holds a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 27.94. This expresses a premium compared to the average Forward P/E of 24.99 of its industry.
One should further note that ETN currently holds a PEG ratio of 2.5. 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. ETN's industry had an average PEG ratio of 1.91 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 40, finds itself in the top 17% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Eaton (ETN) Ascends While Market Falls: Some Facts to Note
Eaton (ETN - Free Report) ended the recent trading session at $343.39, demonstrating a +1.7% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.
The stock of power management company has fallen by 9.66% in the past month, lagging the Industrial Products sector's gain of 1.35% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is expected to report EPS of $3.35, up 18.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.13 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.09 per share and a revenue of $27.54 billion, demonstrating changes of +11.94% and +10.71%, respectively, from the preceding year.
It is also important to note the recent changes 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. As of now, Eaton holds a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 27.94. This expresses a premium compared to the average Forward P/E of 24.99 of its industry.
One should further note that ETN currently holds a PEG ratio of 2.5. 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. ETN's industry had an average PEG ratio of 1.91 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 40, finds itself in the top 17% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.