Eaton (ETN) Dips More Than Broader Market: What You Should Know

In the latest trading session, Eaton (ETN) closed at $308.94, marking a -0.4% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Heading into today, shares of the power management company had gained 0.12% over the past month, outpacing the Industrial Products sector's loss of 0.68% and the S&P 500's loss of 1.66% in that time.

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 $2.28, marking a 21.28% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.9 billion, showing a 7.62% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.28 per share and a revenue of $24.97 billion, signifying shifts of +12.72% and +7.63%, respectively, from the last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

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, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Eaton presently features a Zacks Rank of #2 (Buy).

Digging into valuation, Eaton currently has a Forward P/E ratio of 30.17. For comparison, its industry has an average Forward P/E of 20.91, which means Eaton is trading at a premium to the group.

We can additionally observe that ETN currently boasts a PEG ratio of 2.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 27% of over 250 industries.

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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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