SBGSY - Eaton Offers Broad Exposure To Recovery And Acyclical Growth Stories

• Eaton's second quarter results weren't quite as exceptional on the top line, but incremental margin and price/cost performance were quite strong.
• Electrification markets remain quite strong, and Eaton is seeing an earlier pickup in aerospace than some of its peers; both markets offer attractive multiyear growth runways.
• Eaton doesn't look fundamentally undervalued anymore, but there's still an argument that its superior growth and margin leverage opportunities make it a good pick within an expensive multi-industrial sector.

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