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Eaton (ETN) Stock Sinks As Market Gains: Here's Why
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Eaton (ETN - Free Report) closed at $361.10 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Heading into today, shares of the power management company had gained 3.13% over the past month, outpacing the Industrial Products sector's loss of 6.81% and the S&P 500's loss of 4.28%.
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 $2.75, showcasing a 1.1% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.09 billion, up 11.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.35 per share and a revenue of $30.37 billion, indicating changes of +10.6% and +10.63%, respectively, from the former year.
Investors should also take note of any recent adjustments to 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return 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.
In terms of valuation, Eaton is currently trading at a Forward P/E ratio of 27.38. Its industry sports an average Forward P/E of 24.1, 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 2.51. 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 1.74 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 30% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Eaton (ETN) Stock Sinks As Market Gains: Here's Why
Eaton (ETN - Free Report) closed at $361.10 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Heading into today, shares of the power management company had gained 3.13% over the past month, outpacing the Industrial Products sector's loss of 6.81% and the S&P 500's loss of 4.28%.
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 $2.75, showcasing a 1.1% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.09 billion, up 11.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.35 per share and a revenue of $30.37 billion, indicating changes of +10.6% and +10.63%, respectively, from the former year.
Investors should also take note of any recent adjustments to 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return 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.
In terms of valuation, Eaton is currently trading at a Forward P/E ratio of 27.38. Its industry sports an average Forward P/E of 24.1, 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 2.51. 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 1.74 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 30% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.