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Eaton Corporation plc (ETN), headquartered in Dublin, Ireland, is a leading global power management company known for its innovative solutions and substantial market presence. With a market cap of $130.80 billion, Eaton is a major player in the electrical, hydraulic, and mechanical power sectors. Competing fiercely with other industry leaders, Eaton's rivals include EnerSys (ENS), renowned for its energy storage solutions.
Companies worth $10 billion or more are considered "large-cap" stocks, and Eaton Corporation fits right into that category, signifying its substantial size, stability, and dominance in its industry.
ETN shares are trading 5.2% below their 52-week high of $345.19, which they hit on May 24. However, ETN has seen a 9.9% increase over the last three months compared to the marginal decline seen in the Dow Jones Industrial Average Index ($DOWI) during the same period.
In the long term, ETN is up 35.9% YTD, and the shares have returned an impressive 72.6% over the past 52 weeks. In comparison, the Dow is up 2.7% in 2024 and 13.6% over the past year.
To confirm the bullish price trend, ETN has been trading above its 200-day moving average since late October 2023.
Eaton Corporation's recent price performance can be attributed to its Q1 results released on April 30. Following the earnings release, ETN shares saw a 2.5% decline. The company reported a first-quarter profit of $821 million, with net income of $2.04 per share. Adjusted earnings, accounting for amortization and restructuring costs, were $2.40 per share, surpassing Wall Street expectations of $2.28 per share. The power management company achieved revenue of $5.94 billion, exceeding the anticipated $5.9 billion.
For the second quarter, Eaton forecasts per-share earnings between $2.52 and $2.62, and for the full year, it expects earnings to range from $10.20 to $10.60 per share.
Highlighting the contrast in performance, ETN's competitor, EnerSys, has underperformed ETN. ENS has experienced an 8.6% gain on a YTD basis.
Given its robust price performance, analysts are optimistic about ETN's prospects. The stock has a consensus rating of "Moderately Buy" from 17 analysts in coverage. The mean price target of $332.87 reflects a 1.7% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
