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Eaton (ETN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Eaton (ETN - Free Report) ended the recent trading session at $368.99, demonstrating a -6.33% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.
The power management company's stock has dropped by 10.22% in the past month, falling short of the Industrial Products sector's loss of 2.24% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on November 3, 2026. The company is forecasted to report an EPS of $3.54, showcasing a 15.31% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.45 billion, up 20.93% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.58 per share and revenue of $32.75 billion, indicating changes of +12.51% and +19.33%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% increase. Eaton is currently a Zacks Rank #2 (Buy).
Digging into valuation, Eaton currently has a Forward P/E ratio of 29. For comparison, its industry has an average Forward P/E of 22.51, which means Eaton is trading at a premium to the group.
Also, we should mention that ETN has a PEG ratio of 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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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Eaton (ETN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Eaton (ETN - Free Report) ended the recent trading session at $368.99, demonstrating a -6.33% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.
The power management company's stock has dropped by 10.22% in the past month, falling short of the Industrial Products sector's loss of 2.24% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on November 3, 2026. The company is forecasted to report an EPS of $3.54, showcasing a 15.31% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.45 billion, up 20.93% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.58 per share and revenue of $32.75 billion, indicating changes of +12.51% and +19.33%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% increase. Eaton is currently a Zacks Rank #2 (Buy).
Digging into valuation, Eaton currently has a Forward P/E ratio of 29. For comparison, its industry has an average Forward P/E of 22.51, which means Eaton is trading at a premium to the group.
Also, we should mention that ETN has a PEG ratio of 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.