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Eaton (ETN) Registers a Bigger Fall Than the Market: Important Facts to Note
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Eaton (ETN - Free Report) ended the recent trading session at $431.41, demonstrating a -1.95% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
The power management company's stock has climbed by 9.24% in the past month, exceeding the Industrial Products sector's loss of 0.11% and the S&P 500's gain of 0.96%.
Market participants will be closely following the financial results of Eaton in its upcoming release. In that report, analysts expect Eaton to post earnings of $3.53 per share. This would mark year-over-year growth of 14.98%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.42 billion, indicating a 20.52% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.56 per share and revenue of $32.66 billion. These totals would mark changes of +12.34% and +18.98%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 32.45. This expresses a premium compared to the average Forward P/E of 24.51 of its industry.
Meanwhile, ETN's PEG ratio is currently 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.
View the Zacks #1 Rank List
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Eaton (ETN) Registers a Bigger Fall Than the Market: Important Facts to Note
Eaton (ETN - Free Report) ended the recent trading session at $431.41, demonstrating a -1.95% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
The power management company's stock has climbed by 9.24% in the past month, exceeding the Industrial Products sector's loss of 0.11% and the S&P 500's gain of 0.96%.
Market participants will be closely following the financial results of Eaton in its upcoming release. In that report, analysts expect Eaton to post earnings of $3.53 per share. This would mark year-over-year growth of 14.98%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.42 billion, indicating a 20.52% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.56 per share and revenue of $32.66 billion. These totals would mark changes of +12.34% and +18.98%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Currently, Eaton is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 32.45. This expresses a premium compared to the average Forward P/E of 24.51 of its industry.
Meanwhile, ETN's PEG ratio is currently 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.