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Why Eaton (ETN) Dipped More Than Broader Market Today
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Eaton (ETN - Free Report) closed at $409.15 in the latest trading session, marking a -1.46% move from the prior day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Shares of the power management company witnessed a loss of 9.73% over the previous month, trailing the performance of the Industrial Products sector with its loss of 5.26%, and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is predicted to post an EPS of $3.53, indicating a 14.98% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 20.34% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.54 per share and a revenue of $32.61 billion, representing changes of +12.18% and +18.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 30.66. This valuation marks a premium compared to its industry average Forward P/E of 24.
It is also worth noting that ETN currently has a PEG ratio of 2.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.64.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 101, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Eaton (ETN) Dipped More Than Broader Market Today
Eaton (ETN - Free Report) closed at $409.15 in the latest trading session, marking a -1.46% move from the prior day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Shares of the power management company witnessed a loss of 9.73% over the previous month, trailing the performance of the Industrial Products sector with its loss of 5.26%, and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. The company is predicted to post an EPS of $3.53, indicating a 14.98% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 20.34% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.54 per share and a revenue of $32.61 billion, representing changes of +12.18% and +18.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 30.66. This valuation marks a premium compared to its industry average Forward P/E of 24.
It is also worth noting that ETN currently has a PEG ratio of 2.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.64.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 101, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.