Eaton (ETN) ended the recent trading session at $345.19, demonstrating a +0.76% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.89%.
The power management company's stock has climbed by 2.23% in the past month, exceeding the Industrial Products sector's loss of 3.88% and the S&P 500's loss of 1.56%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company's upcoming EPS is projected at $2.82, signifying a 10.59% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.36 billion, up 6.52% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Eaton. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Eaton has a Forward P/E ratio of 28.34 right now. This denotes a premium relative to the industry's average Forward P/E of 21.42.
Investors should also note that ETN has a PEG ratio of 2.37 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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