Investment Rating - The report maintains a "Buy" rating for the company [14][29]. Core Views - The company is expected to benefit from strong growth in its North American electrification business and stable market share in large infrastructure projects [2][25]. - The company has shown impressive performance in its electrification business, with a significant increase in net profit and operating profit margin [2][15]. - The overall revenue growth forecast for 2024-2026 is positive, with expected increases in both revenue and net profit [29]. Financial Forecasts and Key Metrics - Revenue (in million USD) is projected to grow from 20,752 in 2022 to 28,070 in 2026, with annual growth rates of 5.7%, 11.8%, 7.3%, 6.4%, and 5.9% respectively [1]. - Net profit (in million USD) is expected to rise from 2,462 in 2022 to 4,369 in 2026, reflecting growth rates of 14.8%, 30.7%, 12.3%, 10.1%, and 9.8% [1]. - Earnings per share (EPS) is forecasted to increase from 6.16 in 2022 to 11.15 in 2026 [1]. - The EBIT margin is projected to improve from 14.4% in 2022 to 18.3% in 2026 [1]. - Return on equity (ROE) is expected to rise from 14.5% in 2022 to 17.2% in 2026 [1]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 53.3 in 2022 to 29.5 in 2026, indicating a more attractive valuation over time [1]. Business Performance - In Q1 2024, the company achieved a net profit of 820 million USD, a year-on-year increase of 29% [2][15]. - The operating profit margin for Q1 2024 was reported at 23.1%, up 3.4 percentage points year-on-year [2][15]. - The electrification business in North America saw a revenue increase of 17% year-on-year in Q1 2024, with an operating profit margin of 29.2% [10][15]. - The company has a strong order backlog, with total orders in the electrification business amounting to 11.3 billion USD, a 19% increase from the end of 2023 [25]. Market Trends - The company is expected to benefit from trends in re-industrialization, electrification, and energy transition, particularly in North America and Europe [2][25]. - The demand for data centers and grid construction is anticipated to drive growth in the company's order and performance [2][25].

Eaton Corp. plc (ETN) , with its rising backlogs, systematic capital expenditure, rising earnings estimates and strong ROE, offers a great investment opportunity in the Industrial Products sector. Let's focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment. Growth Projections & Surprise History The Zacks Consensus Estimate for ETN's 2024 earnings per share (EPS) has increased 3.2% to $10.56 in the past 90 days. The Zacks Consensus Estimate for ETN's total revenu ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Eaton (ETN) . Eaton currently has an average brokerage recommendation (ABR ...

Eaton (ETN) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this power management company have returned +5.1% over the past month versus the Zacks S&P 500 composite's -0.3% change. The Zacks Manufacturing - Electronics industry, to which Eaton belongs, has gained 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?Although m ...

Industrial stocks have been on a tear, and there are various reasons for optimism. The Biden Administration’s Infrastructure Investment and Jobs Act (IIJA) authorized spending $850 billion across hundreds of different projects around the nation. Disbursement of that money is already well under way, with a great deal of jobs and economy activity arising as a result; this has been a massive stimulative event for industrial stocks.In addition, technological breakthroughs are driving activity in the space. Elec ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Have you been paying attention to shares of Eaton (ETN) ? Shares have been on the move with the stock up 1.1% over the past month. The stock hit a new 52-week high of $333.06 in the previous session. Eaton has gained 32.2% since the start of the year compared to the 5.6% move for the Zacks Industrial Products sector and the 15.2% return for the Zacks Manufacturing - Electronics industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our ear ...

Guidance lifts commonly inject positivity into shares, with investors scrambling to get in and ride the momentum. Companies raise their outlooks when business is fruitful, sending a bullish message to shareholders.Recently, several companies, including Coca-Cola (KO) , Eaton (ETN) , and Eli Lilly (LLY) , have raised their outlooks, with shares moving higher following the announcements.For those interested in recent bullish activity, let’s take a closer look at each.Coca-ColaBeverage titan Coca-Cola posted E ...

Eaton Corporation (ETN) reported first-quarter 2024 earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate by 5.3%. The bottom line increased 27.7% year over year and beat the earnings guidance of $2.21-$2.31 per share. The improvement was due to increased project activity tied to megatrends, reindustrialization and infrastructure spending.GAAP earnings for the reported quarter were $2.04, up 28.3% from $1.59 reported in the year-ago quarter. The difference between GAAP and operating earn ...