Eaton(US:ETN) ZACKS·2024-07-26 22:52Company Performance - Shares of Eaton have depreciated by 6.71% over the past month, underperforming the Industrial Products sector's gain of 2.95% and the S&P 500's loss of 1.16% [1] - The Zacks Consensus Estimates forecast earnings of $10.56 per share and revenue of $25.13 billion for the year, indicating changes of +15.79% and +8.33%, respectively, compared to the previous year [2] - Eaton's stock closed at $297.79, moving +1.68% from the previous trading session, outperforming the S&P 500, which gained 1.11% [6] Analyst Estimates and Ratings - Recent changes to analyst estimates for Eaton reflect shifting dynamics in short-term business patterns, with positive revisions indicating analysts' confidence in the company's performance [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988; Eaton currently holds a Zacks Rank of 3 (Hold) [4] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 0.01% [4] Valuation Metrics - Eaton is trading at a Forward P/E ratio of 27.74, which is a premium compared to the industry's average Forward P/E of 21.63 [5] - The company has a PEG ratio of 2.45, higher than the industry average PEG ratio of 2.05 [8] Upcoming Earnings - Eaton's upcoming earnings report is set for August 1, 2024, with an expected EPS of $2.61, indicating an 18.1% growth compared to the same quarter last year; revenue is anticipated to be $6.35 billion, reflecting an 8.23% increase from the previous year [7] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 31, placing it in the top 13% of all 250+ industries [8] - The Zacks Industry Rank assesses the strength of industry groups by computing the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9]