In the latest trading session, Eaton (ETN) closed at $431.33, marking a -3.09% move from the previous day. This change lagged the S&P 500’s 0.22% loss on the day. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today’s trading, shares of the power management company had gained 5.44% outpaced the Industrial Products sector’s gain of 0.98% and the S&P 500’s gain of 1.4%.
The investment community will be paying close attention to the earnings performance of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $3.53, marking a 14.98% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.43 billion, indicating a 20.65% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.57 per share and a revenue of $32.68 billion, demonstrating changes of +12.43% and +19.06%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Eaton. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 0.05% higher. Eaton is currently a Zacks Rank #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 32.81. This denotes a premium relative to the industry average Forward P/E of 24.29.
Investors should also note that ETN has a PEG ratio of 2.58 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Manufacturing – Electronics industry had an average PEG ratio of 1.55 as trading concluded yesterday.
The Manufacturing – Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
