Eaton’s (ETN) management has been busy – selling the largely disliked (at least by the Street) lighting and hydraulics businesses, buying an aircraft connectors business, and reprioritizing around long-term drivers like electrification (including smart grid, automation, and electric vehicles) and air travel growth. None of that immunizes Eaton to the current downturn, but it does give Eaton a less-cyclical, higher-margin business to take into the recovery.
Eaton has continued to outperform, and I can’t say the shares are dramatically undervalued. They are, however, priced pretty well in the context of quality industrials,