Key Points Eaton has transitioned its business so that it is focused heavily on electricity. Along the way, the company has worked to favor higher-margin operations. A key long-term goal for this industrial giant is to be a less cyclical business. 10 stocks we like better than Eaton Plc › Eaton (NYSE: ETN) has been a great investment for me. I've owned it since 2015, when it was still working on integrating Cooper Industries. That acquisition, and subsequent fine tuning, has been hugely important ...

Core Insights - Eaton Corporation plc (NYSE:ETN) reported record-breaking second-quarter 2025 results, with earnings per share at $2.51 and adjusted EPS at $2.95, reflecting an 8% increase from the previous year [2] - Sales reached $7.0 billion, an 11% year-over-year growth driven by 8% organic growth, acquisitions, and favorable currency impacts [2] - The Electrical Americas segment generated $3.4 billion in sales, a 16% increase from Q2 2024, driven by strong demand in electrification markets [3] Financial Performance - Earnings per share (EPS) reached $2.51, with adjusted EPS at $2.95, marking an 8% increase year-over-year [2] - Total sales climbed to $7.0 billion, reflecting an 11% growth compared to the previous year [2] - Segment margins achieved a record high of 23.9%, indicating improved profitability [2] Market Dynamics - The backlog increased by 17%, signaling sustained demand across Eaton's offerings [2] - Key growth drivers identified include digitalization, electrification, reindustrialization, and rising defense spending [3] Strategic Moves - In July, Eaton announced the acquisition of Resilient Power Systems Inc., enhancing its capabilities in solid-state transformer technology [4] - This acquisition is expected to strengthen Eaton's position in the electric vehicle ecosystem and expand applications in data centers, port electrification, and battery energy storage [4]

Group 1 - Analysts are favoring Eaton Corporation plc (NYSE:ETN) due to its involvement in AI and data center growth, as well as its role in the modernization of the electric grid [1][2] - The US electricity demand is expected to grow sixfold in the next six years, presenting significant opportunities for companies like Eaton [2] - Eaton Corporation performed well in Q2 2025, benefiting from renewed optimism in AI and maintaining a strong aerospace components business [3] Group 2 - The company is recognized for its electrical equipment used in critical markets such as power generation, transmission, and datacenters [3] - While Eaton is seen as a promising investment, some analysts believe other AI stocks may offer higher returns with lower risk [3]

Core Insights - Dividends are often overlooked in technology stocks, but companies like Eaton and Vertiv are providing dividend payments while also having AI exposure [1] Group 1: Vertiv - Vertiv exceeded consensus EPS and sales expectations, with EPS increasing by 77% and sales rising by 26% [2] - The company raised its full-year 2025 sales guidance, projecting approximately 16% year-over-year growth, driven by AI adoption [3] - Vertiv's shares yield a modest 0.1% annually, with two increases in the payout over the last five years [3] Group 2: Eaton - Eaton is a power management company benefiting from the AI boom, particularly in the data center market [4] - The company reported record-breaking Q2 results with adjusted EPS of $2.95, an 8% increase year-over-year, and organic sales growth of 8% [5] - Eaton has a five-year annualized dividend growth rate of 7.5%, with a current yield of 1.1% and a history of paying dividends since 1923 [10] Group 3: Investment Perspective - Both Eaton and Vertiv, while not high-yield stocks, present bullish outlooks that may attract income-focused investors [11]

Core Insights - Eaton has been selected by Bell Textron Inc. to design, develop, and certify the aerial refueling retractable probe for the U.S. Army's MV-75 Future Long Range Assault Aircraft (FLRAA) [1] - This award signifies a major milestone in Eaton's ongoing collaboration with Bell and its next-generation vertical lift platform [1] - Aerial refueling has been a fundamental aspect of Eaton's aerospace capabilities for decades [1]

Group 1 - The article discusses the AI megatrend and highlights Eaton (NYSE: ETN) as a potential investment opportunity within this trend [1] - The author emphasizes a systematic investment approach that combines technical analysis with fundamental insights, focusing on sustainable growth stocks [1] - Key investment criteria include revenue growth, profitability margins, and a balanced risk profile, with a preference for long-term investments over day trading [1] Group 2 - The author has a beneficial long position in Eaton (ETN) and NVIDIA (NVDA), indicating confidence in these stocks [2] - The article is based on the author's own opinions and does not involve compensation from any company mentioned [2]

Group 1: Market Overview - The US large-cap equity market experienced significant growth in Q2 2025, with the S&P 500® Index increasing by 10.94% due to reduced tariff concerns from the Trump administration [1] - The Macquarie Core Equity Fund's Institutional Class outperformed the S&P 500 Index, returning 11.94% in the same quarter, with 80% of the performance attributed to sector selection [1] Group 2: Eaton Corporation Performance - Eaton Corporation plc (NYSE:ETN) reported a one-month return of 6.81% and a 12.30% increase in share value over the past 52 weeks, closing at $371.27 per share with a market capitalization of $144.535 billion on September 18, 2025 [2] - The company rebounded during the quarter, driven by renewed optimism in AI and a strong aerospace components business, which is expected to benefit from increased aircraft production and refurbishment [3] Group 3: Financial Metrics - In Q2 2025, Eaton Corporation plc reported revenue of $7 billion and expanded its margins by 20 basis points to 23.9% [4]

Summary of Key Points Group 1: Stock Analysis - Apple: The latest iPhone 17 models are considered a bargain, especially with trade-in values and provider incentives [1] - Amazon: Potential for upside if margin expansion continues, particularly in e-commerce and cloud growth [1] - Abbott Laboratories: Valued at approximately 24 times earnings, seen as a high-quality med tech stock worth holding [1] - Broadcom: Recent profit-taking due to exceeding 5% portfolio weighting, but long-term outlook remains positive [1] - Boeing: Newly added to the portfolio, expected to benefit from trade policies and has significant multi-year upside potential [1] - BlackRock: Described as a "bull market stock," with a focus on fast-growing investments [1] - Bristol Myers Squibb: Awaiting results from upcoming studies on its schizophrenia drug, Cobenfy, which could improve sentiment [1] - Capital One: Anticipating share repurchases post-Discover acquisition, with strong management praised [1] - Costco: Long-term outlook remains positive despite recent struggles attributed to market perception [1] - Salesforce: Current levels are not recommended for buying or selling ahead of the Dreamforce conference [1] - CrowdStrike: Ambitious target of $20 billion in annual recurring revenue set, indicating strong management confidence [1] - Cisco Systems: Continued support despite underperformance, with a solid dividend [1] - DuPont: Progressing towards a planned breakup, with Qnity expected to unlock more value [1] - Danaher: Facing headwinds from China but announced a significant buyback [1] - Disney: Shares have stalled, but theme park business remains strong [1] - Dover: Future outlook remains bright despite recent disappointing earnings [1] - Eaton: Potential for increased business from data centers as AI spending rises [1] - GE Vernova: High valuation justified by demand for energy generation in AI infrastructure [1] - Goldman Sachs: Expected revenue growth in investment banking and attractive wealth management business [1] Group 2: Additional Stock Insights - Home Depot: Likely to trim position due to housing market turnaround not meeting expectations [2] - Honeywell International: Shares lagging until split is complete, but value remains [2] - Linde: Continues to deliver for shareholders despite challenging end markets [2] - Eli Lilly: Position maintained due to strong performance and potential game-changing products [2] - Meta Platforms: Dominance in advertising market bolstered by generative AI [2] - Microsoft: Attractive long-term investment, with potential for trimming positions [2] - Nvidia: Partnership with Intel solidifies its leadership in GPUs [2] - Palo Alto Networks: High valuation justified by leadership in cybersecurity [2] - Starbucks: Promising turnaround plan under new CEO [2] - TJX Companies: Strongest earnings performance seen, recognized as a top retail performer [2] - Texas Roadhouse: Stock performance tied to cattle futures, expected surge in share price [2] - Wells Fargo: Positive outlook with increased buybacks and diversification into fee-based businesses [2]

PITTSBURGH--(BUSINESS WIRE)--Intelligent power management company Eaton was recently awarded a multi-million-dollar project to deliver grid modernization solutions for Snohomish County Public Utility District (PUD) in Washington state. Over the next four years, Eaton will help the utility implement smart grid technology across its 6,000-mile distribution system to improve visibility and control capabilities, reduce outage duration and mitigate wildfire risk. Eaton is providing intelligent contr. ...

Core Viewpoint - Eaton Corporation plc (NYSE:ETN) is recognized as a significant player in the AI sector, with Melius upgrading the stock to "Buy" from Neutral and setting a price target of $495, indicating a potential upside of 35% from the current price [1]. Group 1: Stock Upgrade and Valuation - Melius has raised Eaton's price target from $412 to $495, reflecting a positive outlook on the stock's performance [1]. - Concerns regarding Eaton's valuation and slowing earnings momentum have diminished due to increased AI capital spending and a more favorable valuation [1]. Group 2: Market Demand and Growth Potential - Analysts at Melius predict that demand for Eaton's products will continue to exceed supply, even with the addition of new capacity [2]. - The cyclical segments of Eaton appear to be reaching a bottom, suggesting a potential growth phase starting in 2026 and beyond [2]. Group 3: Company Overview - Eaton Corporation plc is a global power management company that provides solutions in electrical, aerospace, vehicle, and eMobility sectors [2].