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Eaton (ETN) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Eaton (ETN - Free Report) was down 1.56% at $402.48. The stock's change was less than the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the power management company had gained 2.78% in the past month. In that same time, the Industrial Products sector lost 0.6%, while the S&P 500 gained 1.41%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.53, reflecting a 14.98% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.43 billion, indicating a 20.66% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.57 per share and revenue of $32.71 billion. These totals would mark changes of +12.43% and +19.17%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Currently, Eaton is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Eaton is holding a Forward P/E ratio of 30.14. For comparison, its industry has an average Forward P/E of 24.31, which means Eaton is trading at a premium to the group.
Meanwhile, ETN's PEG ratio is currently 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.53.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 190, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Eaton (ETN) Stock Sinks As Market Gains: Here's Why
In the latest close session, Eaton (ETN - Free Report) was down 1.56% at $402.48. The stock's change was less than the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the power management company had gained 2.78% in the past month. In that same time, the Industrial Products sector lost 0.6%, while the S&P 500 gained 1.41%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.53, reflecting a 14.98% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.43 billion, indicating a 20.66% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.57 per share and revenue of $32.71 billion. These totals would mark changes of +12.43% and +19.17%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Currently, Eaton is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Eaton is holding a Forward P/E ratio of 30.14. For comparison, its industry has an average Forward P/E of 24.31, which means Eaton is trading at a premium to the group.
Meanwhile, ETN's PEG ratio is currently 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.53.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 190, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.