Eaton (ETN) Stock Slides as Market Rises: Facts to Know Before You Trade

Eaton (ETN) ended the recent trading session at $373.66, demonstrating a -1.31% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%. The power management company's stock has climbed by 14.31% in the past month, exceeding the Industrial Products sector's gain of 7.52% and the S&P 500's gain of 5.35%.The upcoming earnings release of Eaton will be of great interest to investors. The company's earnings report is expected on August 5, 2025. In that report, analysts expect Eaton to post earnings of $2.92 per share. This would mark year-over-year growth of 6.96%. Simultaneously, our latest consensus estimate expects the revenue to be $6.93 billion, showing a 9.09% escalation compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.01 per share and a revenue of $27.36 billion, indicating changes of +11.2% and +9.98%, respectively, from the former year. It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Eaton currently has a Zacks Rank of #3 (Hold). In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 31.52. Its industry sports an average Forward P/E of 24.02, so one might conclude that Eaton is trading at a premium comparatively. Also, we should mention that ETN has a PEG ratio of 2.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ETN's industry had an average PEG ratio of 1.98 as of yesterday's close. The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Should You Invest in Eaton Corporation, PLC (ETN)?Before you invest in Eaton Corporation, PLC (ETN), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eaton Corporation, PLC (ETN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks