Eaton (ETN) Rises Higher Than Market: Key Facts

Eaton (ETN) closed the most recent trading day at $362.22, moving +1.13% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%.

Coming into today, shares of the power management company had gained 9.51% in the past month. In that same time, the Industrial Products sector gained 8.97%, while the S&P 500 gained 4.99%.

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Market participants will be closely following the financial results of Eaton in its upcoming release. It is anticipated that the company will report an EPS of $2.92, marking a 6.96% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.93 billion, up 9.07% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.02 per share and a revenue of $27.36 billion, signifying shifts of +11.3% and +9.96%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Eaton currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 29.81. This represents a premium compared to its industry average Forward P/E of 22.94.

Meanwhile, ETN's PEG ratio is currently 2.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.95.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.

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Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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