Calling out Honeywell (HON) and Eaton (ETN) as preferred names earlier this year has worked out alright, as these two diversified multi-industrials have continued to do well over the past year, year-to-date, and three-month periods, with both really standing out over the industrial sector over the past three months.
Despite Eaton’s outperformance, the shares still look undervalued. I share some of what I assume are the markets worries about the Vehicle and Hydraulics businesses (about 20% of sales), but the business as a whole seems to be on good footing and