2024-05-11 12:16:18 ET
Summary
- Eaton Corporation (ETN) boasts a strong earnings profile and features a high EPS growth trajectory on the back of demand for data center infrastructure.
- The stock trades at a high valuation, but its technical momentum trends are robust, indicating potential near-term upside while share are near intrinsic value in my view.
- I highlight areas to watch on the chart following earnings last month.
There has been a valuation reset for firms within arm’s reach of AI. Data-center power demand and infrastructure players have gone from boring blue chips to hot momentum plays. Many of said companies are not in fundamental ‘bubble’ territory, though. Earnings growth is apparent and barriers to entry into certain niches may be high. ...
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Eaton: Data Center Demand Driving Shares Higher, Big EPS Growth Expected