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Here's Why Eaton (ETN) Fell More Than Broader Market
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In the latest trading session, Eaton (ETN - Free Report) closed at $315.82, marking a -4.28% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. On the other hand, the Dow registered a loss of 0.47%, and the technology-centric Nasdaq decreased by 1.81%.
Heading into today, shares of the power management company had lost 2.47% over the past month, lagging the Industrial Products sector's gain of 3.36% and the S&P 500's gain of 1.03%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's upcoming EPS is projected at $3.35, signifying a 18.37% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.13 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $27.54 billion, which would represent changes of +11.94% and +10.7%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 27.29. This expresses a premium compared to the average Forward P/E of 25.37 of its industry.
Also, we should mention that ETN has a PEG ratio of 2.39. 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 had an average PEG ratio of 2.03 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
To follow ETN in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Eaton (ETN) Fell More Than Broader Market
In the latest trading session, Eaton (ETN - Free Report) closed at $315.82, marking a -4.28% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. On the other hand, the Dow registered a loss of 0.47%, and the technology-centric Nasdaq decreased by 1.81%.
Heading into today, shares of the power management company had lost 2.47% over the past month, lagging the Industrial Products sector's gain of 3.36% and the S&P 500's gain of 1.03%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company's upcoming EPS is projected at $3.35, signifying a 18.37% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.13 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $27.54 billion, which would represent changes of +11.94% and +10.7%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 27.29. This expresses a premium compared to the average Forward P/E of 25.37 of its industry.
Also, we should mention that ETN has a PEG ratio of 2.39. 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 had an average PEG ratio of 2.03 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
To follow ETN in the coming trading sessions, be sure to utilize Zacks.com.