ETN - Eaton: Positives Already Priced In
2024-06-13 03:44:39 ET
Summary
- Eaton stock price surged over 70% in 1 year for good reasons.
- Analysts project a robust EPS growth for ETN in the next few years, supported by broad-based demand in its end markets.
- ETN's premium valuation has already priced in anticipated growth, offering limited alpha compared to broader market.
ETN stock price soared over 70% in 1 year
For readers new to Eaton Corp. ( ETN ), it is a diversified power management company and global manufacturer of highly engineered products. Its products find ubiquitous applications in vehicle, construction, commercial, and aerospace markets. The company has been enjoying terrific profitability in recent quarters thanks to strong demand in many sectors. For example, its 1 st quarter sales in 2024 increased 8% compared to the previous year’s tally and the margin also widened (more on this later). The growth is anchored by solid and broad-based end markets in my view, ranging from commercial, institutional, industrial, and data center applications. And its stock prices have risen in tandem, surging by more than 70% in the past 12 months alone, as you can see from the chart below....
Eaton: Positives Already Priced In