Eaton currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy. Of the 23 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60.9% and 8.7% of all recommendations. Brokerage Recommendation Trends for ETN The recommendations of ...

Wall Street analysts forecast that Eaton (ETN) will report quarterly earnings of $2.92 per share in its upcoming release, pointing to a year-over-year increase of 7%. It is anticipated that revenues will amount to $6.93 billion, exhibiting an increase of 9.1% compared to the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections ...

Investors interested in Manufacturing - Electronics stocks are likely familiar with Vestas Wind Systems AS (VWDRY) and Eaton (ETN) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estima ...

Group 1 - The analysis reviews the top 10 of 16 taxable closed-end funds (CEFs) offered by Eaton Vance, indicating a positive experience for investors [1] - The author expresses a desire to expand ownership in these funds, suggesting confidence in their performance [1] - David A. Johnson, the founder of Endurance Capital Management, has over 30 years of investment experience and holds multiple advanced degrees in finance and business [1] Group 2 - The article does not provide specific financial metrics or performance data related to the funds discussed [2][3]

Core Viewpoint - Eaton (ETN) has shown strong stock performance recently, with a +10.6% return over the past month, outperforming the S&P 500 composite's +4.6% and the Zacks Manufacturing - Electronics industry's +12% [1] Earnings Estimate Revisions - The consensus earnings estimate for Eaton is $2.92 per share for the current quarter, reflecting a year-over-year increase of +7% [4] - For the current fiscal year, the consensus earnings estimate is $12.02, indicating a change of +11.3% from the previous year [4] - The next fiscal year's consensus earnings estimate is $13.62, showing a +13.3% change from the prior year [5] - The Zacks Rank for Eaton is 3 (Hold), influenced by recent changes in earnings estimates and other related factors [6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $6.93 billion, representing a year-over-year change of +9.1% [10] - For the current fiscal year, the sales estimate is $27.37 billion, indicating a +10% change, while the next fiscal year's estimate is $29.57 billion, reflecting an +8% change [10] Last Reported Results and Surprise History - Eaton reported revenues of $6.38 billion in the last quarter, a year-over-year increase of +7.3%, with an EPS of $2.72 compared to $2.4 a year ago [11] - The company exceeded consensus revenue estimates once in the last four quarters and beat consensus EPS estimates in all four quarters [12] Valuation - Eaton has a Zacks Value Style Score of D, indicating it is trading at a premium compared to its peers [16]

Core Viewpoint - Morgan Stanley's strategy team highlights 15 stocks with short-term catalytic potential, indicating that S&P 500 index earnings growth in Q2 may exceed expectations [1] Earnings Expectations - The market anticipates a 5% year-over-year increase in S&P 500 Q2 earnings per share and over 4% revenue growth, but actual growth may be stronger [1] - The seven major tech companies are expected to see a 14% increase in net profit, while the remaining 493 constituents may experience a 3% decline [1] - Despite analysts lowering earnings expectations from April to May, the earnings revision has rebounded from -25% to approximately 1%, suggesting Q2 earnings will likely exceed expectations, aligning with the historical average of 4%-5% [1] Recommended Stocks - **argenx SE (ARGX.US)**: undervalued R&D pipeline, target price $700 [2] - **Atlassian (TEAM.US)**: continuous revenue growth potential over 20% and expected margin expansion, target price $320 [3] - **Chewy (CHWY.US)**: benefits from marketing and product optimization, expected revenue to maintain or exceed Q1 levels, target price $50 [4] - **CVS Health (CVS.US)**: advantages from competitor store closures and growth in pharmacy benefit management, target price $80 [4] - **DraftKings (DKNG.US)**: potential earnings inflection point in Q2, with actual licensing rates offsetting tax and regulatory pressures, target price $52 [4] - **Eaton Corporation (ETN.US)**: benefits from improved profit margins in U.S. electrical business, target price $375 [5] - **Eli Lilly (LLY.US)**: core products Mounjaro and Zepbound expected to contribute $8.2 billion in revenue, exceeding expectations may lead to 2025 guidance upgrades, target price $1,135 [5] - **F5 (FFIV.US)**: positive outlook due to demand growth in cloud and load balancing products, target price $305 [6] - **NVIDIA (NVDA.US)**: strong end-user demand and accelerated shipments of rack-level products supporting supply-side growth, target price $170 [7] - **Omada Health (OMDA.US)**: operational leverage through technology empowerment and multi-disease sales, target price $25 [8] - **Southwest Airlines (LUV.US)**: potential stock rebound if internal guidance is met and baggage fee impacts are confirmed as limited, target price $38 [9] - **Valley National Bank (VLY.US)**: expected net interest income growth of 3% quarter-over-quarter, target price $11 [10] - **Western Digital (WDC.US)**: undervalued gross margin expansion prospects, target price $85 [11] Cautious Outlook - **National Storage Affiliates Trust (NSA.US)**: cautious due to expected funds from operations (FFO) per share being below market and company guidance, target price $30 [12] - **Teradyne (TER.US)**: revenue and earnings per share forecasts for FY2026 are 7% and 14% below Wall Street expectations, target price $74 [13] Summary - Overall, Morgan Stanley's recommendations combine company fundamentals, industry trends, and market sentiment, providing diversified options for investors [14]

Core Insights - Eaton has significantly outperformed the S&P 500, delivering total returns of 57.8% since the last article [1] Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an overweight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income [1] - A top-down capital allocation approach is recommended, tailored to individual investor situations, including factors like age, retirement status, risk tolerance, income, net worth, and goals [1]

Company Performance - Eaton's stock closed at $373.66, reflecting a -1.31% change from the previous day's closing price, underperforming the S&P 500 which gained 0.14% [1] - Over the past month, Eaton's stock has increased by 14.31%, outperforming the Industrial Products sector's gain of 7.52% and the S&P 500's gain of 5.35% [1] Upcoming Earnings - Eaton's earnings report is anticipated on August 5, 2025, with expected earnings of $2.92 per share, indicating a year-over-year growth of 6.96% [2] - The consensus estimate for revenue is $6.93 billion, representing a 9.09% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.01 per share and revenue of $27.36 billion, reflecting changes of +11.2% and +9.98% respectively from the previous year [3] - Recent modifications to analyst estimates for Eaton suggest positive sentiment regarding the company's business and profitability [3] Stock Performance and Valuation - The Zacks Rank system indicates that estimate alterations are linked to stock price performance, with Eaton currently holding a Zacks Rank of 3 (Hold) [4][5] - Eaton's Forward P/E ratio is 31.52, which is higher than the industry average of 24.02, suggesting that Eaton is trading at a premium [6] - The PEG ratio for Eaton is 2.86, compared to the industry average PEG ratio of 1.98, indicating a higher valuation relative to expected earnings growth [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 45, placing it in the top 19% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Investment Plans - Trump announced an investment plan exceeding $92 billion in Pennsylvania, focusing on AI infrastructure and energy projects, surpassing the previously announced $70 billion[1][6] - Blackstone Group is expected to invest $25 billion in data centers and energy infrastructure development[1][6] - Amazon plans to invest $20 billion in a new large data center and support upgrades for the Susquehanna Nuclear Power Plant[2][6] Market Trends - Pennsylvania is rapidly developing as a data center cluster, with confirmed investments totaling approximately $15 billion from various consortiums[2][6] - By 2025, U.S. super data center operators' capital expenditure is projected to increase by 34% year-on-year, reaching $257 billion[3][7] - The U.S. power grid is aging, with over 75% of equipment in service for more than 30 years, necessitating urgent updates[3][8] Equipment Demand - GE Vernova and Siemens Energy reported strong order backlogs of $76.3 billion and €52 billion, respectively, with significant year-on-year growth in new orders[4][9] - The market for dispatchable power generation and grid equipment remains robust, with GE Vernova expected to exceed 60GW in gas turbine contracts by year-end[4][9] Investment Recommendations - Companies benefiting from policy-driven tax reductions and capacity expansion investments include Vistra, Constellation, and Siemens Energy[5][10] - Risks include lower-than-expected demand for U.S. infrastructure and potential geopolitical risks affecting the AI sector[5][11]

Core Viewpoint - Vestas Wind Systems AS (VWDRY) is currently viewed as a better value opportunity compared to Eaton (ETN) based on various financial metrics and analyst outlooks [1][3][7]. Valuation Metrics - VWDRY has a forward P/E ratio of 20.66, while ETN has a forward P/E of 30.02, indicating that VWDRY is more attractively priced [5]. - The PEG ratio for VWDRY is 0.62, suggesting it is undervalued relative to its expected earnings growth, whereas ETN has a PEG ratio of 2.72, indicating a higher valuation relative to growth [5]. - VWDRY's P/B ratio is 4.65, compared to ETN's P/B of 7.61, further supporting the notion that VWDRY is a more favorable investment based on book value [6]. Analyst Outlook - VWDRY holds a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while ETN has a Zacks Rank of 3 (Hold) [3][7]. - The improving earnings outlook for VWDRY enhances its attractiveness as a value investment [7].