Both Eaton (ETN -1.76%)and nVent Electric (NVT -2.87%) are direct beneficiaries of the artificial intelligence (AI) data center and global electrification boom. Their revenue trajectories, however, reflect the contrast between an incumbent and a relatively smaller company trying to capture a bigger share of the market.
Eaton: A Steady Upward Revenue TrendEaton primarily generates revenue by providing energy-efficient solutions for electrical, hydraulic, and mechanical power across aerospace, vehicle, and other industrial segments.
While entering an agreement to separate its mobility group in June 2026, it reported a net margin of 12% for the quarter ended March 31, 2026.
nVent Electric: Consistent Quarter-Over-Quarter GainsnVent designs and produces electrical connection and protective equipment for commercial, industrial, and infrastructure applications.
It authorized a new share repurchase program and appointed new executive leadership in mid-2026, while reporting a net margin of 11% for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue here refers to the data provider's standardized income statement revenue line item and serves as a baseline indicator of a company's ability to generate sales from its core business operations.
Quarterly Revenue for Eaton and nVent ElectricQuarter (Period End)Eaton RevenuenVent Electric RevenueQ2 2024 (June 2024)$6.3 billion$739.8 millionQ3 2024 (Sept. 2024)$6.3 billion$782.0 millionQ4 2024 (Dec. 2024)$6.2 billion$752.2 millionQ1 2025 (March 2025)$6.4 billion$809.3 millionQ2 2025 (June 2025)$7.0 billion$963.1 millionQ3 2025 (Sept. 2025)$7.0 billion$1.1 billionQ4 2025 (Dec. 2025)$7.1 billion$1.1 billionQ1 2026 (March 2026)$7.5 billion$1.2 billionData source: Company filings. Data as of July 13, 2026.
Foolish TakeEaton is a power management giant that designs and manufactures essential electrical distribution equipment, including transformers, circuit breakers, switchgear, substations, and uninterruptible power supply (UPS) systems. Its $9.5 billion acquisition of Boyd Thermal in March 2026 has given Eaton a huge headway into the rapidly growing liquid cooling market, creating one of the world’s largest grid-to-chip solutions providers.
Eaton’s revenue hit a record in Q1, with sales surging 17%, including 10% organic growth, 4% from Boyd and other acquisitions, and 3% from foreign exchange impact. Last quarter, Eaton raised its FY 2026 organic revenue guidance from 8% to 10% at the midpoint. Backlog as of the end of last quarter was $23 billion.
nVent Electric was spun off from Pentair (PNR +2.32%) in 2018 and has since doubled its sales. It does the work inside data centers, providing the electrical enclosures, cabinets, specialized racks, and thermal management solutions. Its steady revenue growth reflects strong demand.
nVent’s sales surged 51% year over year in Q1 to a record high, and it projects 2026 revenue growth of 26% to 28%. A backlog of $2.6 billion means nVent is almost 10 times smaller than Eaton, but it is growing faster. If you track the revenue trajectory, nVent could achieve higher percentage growth rates, as it’s a smaller company expanding its presence in data center cooling and connection infrastructure.
Look beyond the revenue growth, and both Eaton and nVent are solid AI plays right now.
Eaton (ETN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis power management company is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +4.4%.
Revenues are expected to be $8 billion, up 13.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Eaton?For Eaton, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.32%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Eaton will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Eaton would post earnings of $2.74 per share when it actually produced earnings of $2.81, delivering a surprise of +2.55%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Eaton appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Manufacturing - Electronics industry, A.O. Smith (AOS - Free Report) , is soon expected to post earnings of $0.96 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -10.3%. This quarter's revenue is expected to be $986.45 million, down 2.5% from the year-ago quarter.
The consensus EPS estimate for A.O. Smith has been revised 0.2% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.08%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that A.O. Smith will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Eaton (ETN - Free Report) closed at $415.13 in the latest trading session, marking a +2.02% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Shares of the power management company have appreciated by 0.57% over the course of the past month, outperforming the Industrial Products sector's loss of 4.11%, and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of Eaton in its upcoming release. The company plans to announce its earnings on July 31, 2026. It is anticipated that the company will report an EPS of $3.08, marking a 4.41% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8 billion, indicating a 13.9% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.35 per share and revenue of $31.82 billion, indicating changes of +10.6% and +15.94%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. Currently, Eaton is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Eaton is presently being traded at a Forward P/E ratio of 30.49. This represents a premium compared to its industry average Forward P/E of 22.84.
Investors should also note that ETN has a PEG ratio of 2.61 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.61 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
DUBLIN--(BUSINESS WIRE)--The Board of Directors of intelligent power management company Eaton (NYSE:ETN) today declared a quarterly dividend of $1.10 per ordinary share. The dividend is payable August 28, 2026, to shareholders of record at the close of business on August 7, 2026. Eaton has paid dividends on its shares every year since 1923. Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make pr.
When you have $10,000 to invest, where you refuse to put your money matters just as much as where you do put it. The industrial sector is booming right now, powered by the enormous electricity and data center build-out behind artificial intelligence, but not every industrial deserves your cash.
Here are two stocks I would buy for that tailwind, and one popular name I would steer well clear of, no matter how loud the comeback story gets.
Buy: Eaton Eaton (ETN +0.37%) is the electrical backbone of the AI era. It makes the equipment that moves and manages power inside data centers, factories, and the grid, and demand has gone vertical. Its data center orders recently jumped roughly 240% from a year earlier, and its total data center backlog now represents something like 11 years of construction at current build rates. That's extraordinary visibility for an industrial company. Management raised its 2026 growth outlook and is spending $1.5 billion to expand manufacturing so it can actually deliver on the orders stacking up.
Crucially, Eaton is not a one-trick data center bet. It also profits from grid modernization, the reshoring of American factories, and the electrification of buildings and aircraft, so several powerful trends push in the same direction at once.
I will point out the one real drawback: After a strong run, Eaton is not cheap, so a slowdown in data center spending would sting. But this is a diversified, profitable market leader riding a multi-year wave, and that combination justifies a premium. For $10,000 meant to compound over years, Eaton is the kind of quality anchor I want.
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Buy: Powell Industries Powell Industries (POWL +6.89%) is the smaller, punchier way to play the same trend. It builds electrical equipment for utilities, energy projects, and increasingly data centers, and its balance sheet is pristine: It holds hundreds of millions in cash with no meaningful debt, a genuine fortress. New orders recently surged around 97%, backlog hit a record, and the company landed the largest single order in its history, worth more than $400 million, tied to a data center.
Because Powell is a fraction of Eaton's size, each big win moves the needle far more, which gives it more torque as the build-out continues. The trade-off is that smaller industrials are more volatile and more exposed to a slip in any single project, and the stock has climbed sharply. Still, a debt-free company with a booming order book is exactly the profile I want for a smaller, higher-upside position.
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Avoid: Boeing Now the name I would avoid like the plague with fresh money: Boeing (BA 2.15%). Yes, the comeback is real on the surface. Deliveries have hit their highest level in years, and management is finally guiding to positive free cash flow for the first time since the 737 MAX crisis. Bulls have latched onto that narrative.
Image source: Getty Images.
But look harder and the risk-reward is poor. Boeing carries roughly $54 billion in debt against about $29 billion in cash (as of Q1), a precarious balance sheet for a company still fixing itself. Its 777X program has been delayed yet again into 2027, saddled with a nearly $5 billion charge and a fresh engine durability problem, the latest chapter in a long history of certification setbacks and broken timelines.
When a company repeatedly overpromises and underdelivers while drowning in debt, I don't want to be the one funding the hope. The turnaround may eventually work, but the same $10,000 buys cleaner, better-capitalized growth elsewhere.
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My view here is simple: Favor industrials with strong balance sheets and visible, contracted demand, and avoid those relying on a fragile turnaround and a mountain of debt. Eaton offers quality and scale, Powell offers a debt-free growth kicker, and both sit directly in the path of the electricity supercycle. Boeing, for all its recent momentum, remains a show-me story with too much leverage and too many broken promises for me to trust with new capital.
Split your $10,000 toward the businesses that are already delivering, and let the market keep dreaming on the one that isn't.
Key Takeaways Eaton's Electrical Americas data-center revenues rose about 50% year over year in first-quarter 2026.Boyd Thermal adds liquid cooling, while the NVIDIA-linked platform supports AI factory power needs.Strong demand prompted Eaton to raise its 2026 organic growth outlook to 9-11%. Eaton Corporation (ETN - Free Report) is increasingly emerging as a critical enabler of next-generation digital infrastructure amid the rapid expansion of AI-driven data centers. As hyperscalers and cloud providers build facilities capable of handling increasingly power-intensive AI workloads, dependable electrical infrastructure has become as essential as computing hardware. This shift positions Eaton to capitalize on a multi-year investment cycle extending beyond traditional industrial demand.
AI servers consume considerably more electricity and generate more heat than conventional computing systems, accelerating demand for advanced power distribution and thermal-management technologies. The transition toward high-density AI infrastructure is driving the need for integrated grid-to-chip power and cooling solutions, aligning well with Eaton’s electrical portfolio. The acquisition of Boyd Thermal further strengthens this opportunity by adding liquid-cooling capabilities.
In the first quarter of 2026, Eaton’s Electrical Americas data-center revenues increased approximately 50% year over year. Management also highlighted the Eaton Beam Rubin DSX platform, developed with NVIDIA, as an end-to-end power blueprint for AI factories. Supported by strong data-center and broader electrical-market demand, Eaton raised its 2026 organic growth outlook to 9-11%.
Eaton’s comprehensive product portfolio, expanding backlog, manufacturing-capacity investments and growing liquid-cooling presence should support sustained revenue growth while increasing its content per data-center project. Consequently, AI data centers represent a structural growth avenue rather than a short-term equipment cycle. As investment in AI infrastructure accelerates, Eaton’s role as a key provider of mission-critical electrical and cooling systems should continue to strengthen.
What About ETN’s Peers?The rapid buildout of AI data centers is unlocking substantial growth opportunities for Emerson Electric (EMR - Free Report) and Powell Industries (POWL - Free Report) .
Emerson is benefiting from increased demand for automation, software, and control solutions that enhance cooling, energy efficiency, and operational reliability in power-intensive facilities.
Powell is gaining from rising investments in medium-voltage switchgear and power distribution systems, both essential for uninterrupted data center operations.
As hyperscalers continue expanding AI infrastructure, Emerson is reinforcing its leadership in industrial automation, while Powell is strengthening its role in resilient electrical infrastructure.
ETN Price PerformanceShares of Eaton have gained 8.8% in a year, outperforming the industry.
Image Source: Zacks Investment Research
ETN’s Expensive ValuationEaton’s shares are trading at a premium compared with its industry. The company’s forward 12-month price-to-earnings of 27.39X is higher than its industry’s 23.24X.
Image Source: Zacks Investment Research
Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s second-quarter and third-quarter 2026 EPS has moved 1 cent north each in the past 30 days. The Zacks Consensus Estimate for 2026 and 2027 EPS has moved 2 cents and 7 cents north, respectively, in the past 30 days.
WIMBORNE, England--(BUSINESS WIRE)--Intelligent power management company Eaton opened a European Centre of Additive Manufacturing in the U.K., advancing its strategy to scale additive manufacturing globally and support growing global demand for next-generation aerospace platforms. As aerospace manufacturers continue to seek lighter, more efficient components and more resilient supply chains, additive manufacturing is gaining broader interest across the industry. Eaton's newest additive manufact.
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Vestas Wind Systems AS (VWDRY - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Vestas Wind Systems AS and Eaton are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VWDRY currently has a forward P/E ratio of 19.85, while ETN has a forward P/E of 29.97. We also note that VWDRY has a PEG ratio of 1.00. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ETN currently has a PEG ratio of 2.57.
Another notable valuation metric for VWDRY is its P/B ratio of 5.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 7.86.
These are just a few of the metrics contributing to VWDRY's Value grade of B and ETN's Value grade of D.
Both VWDRY and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VWDRY is the superior value option right now.
Eaton (ETN - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Eaton basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Eaton imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for EatonFor the fiscal year ending December 2026, this power management company is expected to earn $13.35 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Eaton. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Eaton to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Eaton (ETN - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Eaton currently has an average brokerage recommendation (ABR) of 1.56, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.56 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 68% and 8% of all recommendations.
Brokerage Recommendation Trends for ETN
Check price target & stock forecast for Eaton here>>>
The ABR suggests buying Eaton, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ETN Worth Investing In?In terms of earnings estimate revisions for Eaton, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $13.35.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Eaton. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Eaton may serve as a useful guide for investors.
Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Eaton (ETN - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Eaton is a member of the Industrial Products sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Eaton is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ETN's full-year earnings has moved 0.2% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ETN has moved about 25.6% on a year-to-date basis. Meanwhile, stocks in the Industrial Products group have gained about 16.3% on average. This means that Eaton is outperforming the sector as a whole this year.
One other Industrial Products stock that has outperformed the sector so far this year is Gorman-Rupp (GRC - Free Report) . The stock is up 67% year-to-date.
The consensus estimate for Gorman-Rupp's current year EPS has increased 12.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Eaton belongs to the Manufacturing - Electronics industry, which includes 14 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 18.7% this year, meaning that ETN is performing better in terms of year-to-date returns.
On the other hand, Gorman-Rupp belongs to the Manufacturing - General Industrial industry. This 41-stock industry is currently ranked #52. The industry has moved +6.4% year to date.
Eaton and Gorman-Rupp could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
Mickey Brunton Joins as Managing Director & Senior Leader on GP Solutions Team July 20, 2026 08:30 ET | Source: Eaton Partners
STAMFORD, Conn., July 20, 2026 (GLOBE NEWSWIRE) -- Eaton Partners, one of the largest private capital advisory firms and a wholly-owned subsidiary of Stifel Financial Corp. (NYSE: SF), is announcing key appointments to expand its Private Capital Advisory (“PCA”) group, including the addition of Mickey Brunton as Managing Director and Co-Head of GP-led Secondaries.
Mr. Brunton will serve as a senior leader on Eaton Partners’ GP Solutions team, advising financial sponsors on GP-led secondary transactions and innovative liquidity solutions. Prior to joining Eaton Partners, Mr. Brunton was Head of Secondaries at Connaught LLC, where he established and led the firm’s Secondaries advisory platform, originating and executing approximately $500 million in secondary transactions. Before that, he served in Jefferies’ Private Capital Advisory group, advising on more than $4 billion in secondary transactions during his tenure. Mr. Brunton earned an MS in Finance from Texas Tech University and an undergraduate degree in Business Administration and Finance from Lubbock Christian University. Mr. Brunton is a CFA Charterholder.
“Our Private Capital Advisory group is a core pillar of our business, and Mickey’s appointment reflects our continued investment in the platform and commitment to maintaining Eaton’s position as a leading global capital solutions advisor,” said Eric Deyle, Global Co-Head at Eaton Partners. “With the growth of the Secondaries market and increasing demands from our clients, we are excited to welcome Mickey to the team, where his deep transaction experience and strong industry relationships will further strengthen our capabilities.”
“I have long respected Eaton Partners and am thrilled to join the team and contribute to the firm’s continued success,” said Brunton. “The firm's scale, global reach, and integrated platform position it exceptionally well to meet growing client demand. I am looking forward to working with the entire team to help accelerate Eaton’s next phase of growth.”
Also joining Eaton Partners from Connaught LLC are Stephen Sellman as Vice President, Matt Reynolds as Associate, and Darian Brill as Analyst.
Eaton Partners, which provides leading fundraising, advisory, and capital solutions capabilities as part of the investment banking team at Stifel, offers investment managers direct access to Stifel’s broader banking services, which include more than 750 professionals worldwide.
About Eaton Partners
Eaton Partners, a Stifel Company, is one of the world’s largest private capital advisory firms, having raised more than $140 billion across more than 190 highly differentiated alternative investment funds and offerings. Founded in 1983, Eaton advises and raises institutional capital for investment managers across alternative strategies – private equity, private credit, real assets, real estate, and hedge funds/public market – in both the primary and secondary markets. Eaton Partners maintains offices and operates throughout North America, Europe, and Asia. Eaton Partners is a division of Stifel, Nicolaus & Company, Incorporated, Member SIPC and NYSE. Eaton Partners subsidiary Eaton Partners (UK) LLP is authorized and regulated by the Financial Conduct Authority (FCA). Eaton Partners subsidiary Stifel Hong Kong Limited, doing business as Eaton Partners Hong Kong, is approved as a Type 1-licensed company under the Securities and Futures Commission (SFC) in Hong Kong. Eaton Partners and the Eaton Partners logo are trademarks of Eaton Partners, LLC, a limited liability company. ® Eaton Partners, 2025. For more information, please visit https://eaton-partners.com/.
Stifel Company Information
Stifel Financial Corp. (NYSE: SF) is a diversified financial services firm providing wealth management, commercial and investment banking, trading, and research services to individuals, institutions, and municipalities. Founded in 1890 and headquartered in St. Louis, Missouri, the firm operates more than 400 offices across the United States and in major global financial centers. As a firm where success meets success, Stifel works closely with retail and institutional clients aiming to transform opportunities into achievement. Stifel Bank and Stifel Bank & Trust, Members FDIC, offer a full range of consumer and commercial lending solutions. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.
Investors in Eaton Corporation plc (ETN - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 17, 2026 $180 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Eaton shares, but what is the fundamental picture for the company? Currently, Eaton is a Zacks Rank #3 (Hold) in the Manufacturing – Electronics industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 30 days, two analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.07 per share to $3.08 in that period.
Given the way analysts feel about Eaton right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
In the latest close session, Eaton (ETN - Free Report) was down 4.02% at $396.27. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Shares of the power management company have appreciated by 0.79% over the course of the past month, outperforming the Industrial Products sector's loss of 0.95%, and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 31, 2026. The company is forecasted to report an EPS of $3.08, showcasing a 4.41% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, up 13.62% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.35 per share and a revenue of $31.82 billion, signifying shifts of +10.6% and +15.94%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Eaton is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Eaton is currently trading at a Forward P/E ratio of 30.93. For comparison, its industry has an average Forward P/E of 22.77, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.68.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ETN in the coming trading sessions, be sure to utilize Zacks.com.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
AI data center construction is a power problem before it is a compute problem, and the equipment that moves, conditions, cools and backs up electricity inside those buildings is where the earnings leverage is showing up first.
Three U.S.-listed industrials have become the cleanest ways to own that buildout: Eaton (NYSE:ETN | ETN Price Prediction) for switchgear and thermal management, Vertiv (NYSE:VRT) for critical power and cooling infrastructure and Caterpillar (NYSE:CAT) for on-site backup generation. Each posted a first-quarter beat, each raised guidance, and each is trading with a forward multiple that reflects real order acceleration rather than a story. Here is how they stack up going into the July earnings cycle.
The macro backdrop is unusually supportive. The Department of Energy projects data centers will account for up to 12% of U.S. electrical demand by 2028, and PJM Interconnection’s independent market monitor concluded that “data center load growth is the primary reason for recent and expected capacity market conditions” in the country’s largest grid region. That is the tailwind these three names are monetizing.
Eaton (ETN): The Compounding Acquirer Eaton makes the electrical guts of a data center: switchgear, busway, power distribution and now liquid cooling after closing Boyd Thermal. Shares traded around $413.98 on July 15, up 26.48% year to date, with a market cap near $158 billion. Forward earnings sits at 30x and the analyst consensus target at $455.79, with 22 Buy or Strong Buy ratings against four Hold ratings.
Q1 delivered adjusted EPS of $2.81 versus a $2.73 consensus on revenue of $7.45 billion, up 16.8% year over year. The number to anchor on is Electrical Americas: revenue rose 20% while the twelve-month rolling order book grew 42% organically, driven by data center demand. Total Electrical backlog is up 48%. Management closed $11 billion in acquisitions in the quarter, headlined by Boyd Thermal at $9.55 billion, and raised full-year adjusted EPS guidance to $13.05 to $13.50. CEO Paulo Ruiz called out “significant capacity expansion investments to meet demand” in Electrical Americas.
Risk: integration. Net interest expense jumped to $106 million from $33 million year over year, and GAAP EPS fell to $2.22 from $2.45 on acquisition charges. A stumble on Boyd or the planned Q1 2027 Mobility spin-off would compress the multiple quickly.
Vertiv (VRT): The High-Growth Pure Play Vertiv is the closest thing to a listed data-center-infrastructure pure play. On July 15, shares changed hands around $300.86, up more than 71% year to date and more than 136% over the past year. Forward earnings sits at 52x, with a consensus target of $377.40 and 22 Buy or Strong Buy ratings calls versus three Hold ratings.
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The re-rating has fundamentals behind it. Q1 revenue grew 30.1% to $2.65 billion, adjusted EPS of $1.17 beat by 15.68%, and Americas organic sales expanded 44%. Adjusted operating margin expanded 430 basis points to 20.8%. The leading indicator is Q4 2025 orders, which grew 252% year over year, pushing backlog to $15 billion at a book-to-bill near 2.9x. Vertiv joined the S&P 500 in March 2026 after picking up investment-grade ratings in February. Full-year adjusted EPS guidance was raised to $6.30 to $6.40, implying 50% to 52% growth at the midpoint.
Risk: valuation and geography. EMEA revenue declined 20.3%, and at 52x forward earnings with a beta of 2.03, any hiccup in the AI CapEx cycle would land squarely on this multiple. Shares already slipped 3.96% in the past week.
Caterpillar (CAT): The Scale Play With a Backup Power Kicker Caterpillar is the biggest of the three, at $438 billion in market cap, and its data center exposure runs through large reciprocating engines and turbines used for prime and backup power. Shares traded around $917.58 on July 15, up 53.34% year to date and 126.76% over the past 12 months. Forward earnings comes in at 39x, with an analyst target of $962.49 and a more mixed rating split: 15 Buy or Strong Buy ratings, 11 Hold ratings and two Sell ratings.
Q1 EPS of $5.54 topped the $4.64 consensus by 19.3% on revenue of $17.415 billion, up 22.2%. Power Generation, the product line closest to AI infrastructure, grew 41% to $2.817 billion. Momentum has been building for four straight quarters: +28% in Q2 2025, +31% in Q3, +44% in Q4, and +41% in Q1 2026. CEO Joe Creed pointed to “a record backlog” as the foundation for continued momentum. Capital returns underline the scale: $5.0 billion in buybacks and roughly $0.7 billion in dividends in the quarter, with a yield near 0.64%.
Risk: tariffs and cyclicality. Resource Industries segment profit fell 39% on tariff-driven manufacturing costs, and Caterpillar’s construction and mining exposure remains cyclical if dealer inventory builds outrun end-user demand.
Investors get three distinct expressions of the same trade here: Eaton for compounding execution and M&A optionality, Vertiv for the highest earnings growth rate at the highest multiple, and Caterpillar for scale, capital returns, and a Power Generation line that keeps re-accelerating. Second-quarter reports across the group will be the near-term catalyst worth watching.
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Eaton (ETN - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this power management company have returned +1.9% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Manufacturing - Electronics industry, to which Eaton belongs, has gained 0.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Eaton is expected to post earnings of $3.08 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The consensus earnings estimate of $13.35 for the current fiscal year indicates a year-over-year change of +10.6%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $15.71 indicates a change of +17.7% from what Eaton is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Eaton.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Eaton, the consensus sales estimate for the current quarter of $7.99 billion indicates a year-over-year change of +13.6%. For the current and next fiscal years, $31.82 billion and $35.13 billion estimates indicate +15.9% and +10.4% changes, respectively.
Last Reported Results and Surprise HistoryEaton reported revenues of $7.45 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $2.81 for the same period compares with $2.72 a year ago.
Compared to the Zacks Consensus Estimate of $7.09 billion, the reported revenues represent a surprise of +5.16%. The EPS surprise was +2.55%.
Over the last four quarters, Eaton surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Eaton is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Eaton. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Eaton closed 6.7% below its 52-week high, supported by electrification and data center demand.Eaton expects 2026 adjusted EPS of $13.05-$13.50 and organic revenue growth of 9-11%.Eaton's 24.72% ROE tops the industry, but its 27.96X forward P/E signals a premium valuation. Shares of Eaton Corporation (ETN - Free Report) closed at $407.28, a 6.7% discount to its 52-week high of $436.74. This diversified power management company and a global technology leader in electrical components and systems is gaining from rising electrification and data center demand.
Eaton has gained 1.3% in the past three months, outperforming the industry. It has, however, lagged its sector and the Zacks S&P 500 composite in the same time frame.
ETN vs Industry, Sector, S&P 500 in 3 Months
Image Source: Zacks Investment Research
Emerson Electric Co. (EMR - Free Report) and Powell Industries (POWL - Free Report) , both industrial tech stocks, have lost 3.9% and 0.9%, respectively, in the past three months.
Should you consider adding ETN stock to your portfolio based on positive price movement only? Let’s delve deeper and find out the factors that can help investors decide whether it is a good time to add ETN stock to their portfolio.
What’s Driving Eaton?Eaton is well-positioned to benefit from several long-term growth drivers, including grid modernization, expanding data center infrastructure, industrial automation, the global energy transition, and the recovery in aerospace markets. Its growing backlog reflects healthy customer demand and the company's ability to deliver reliable, mission-critical power management solutions.
Innovation and sustainability remain central to Eaton’s long-term strategy. The company plans to invest approximately $3 billion in research and development over the next decade to develop advanced, sustainable technologies, strengthen its product portfolio, and meet evolving customer needs while reinforcing its competitive position.
Strategic acquisitions also play an important role in Eaton’s growth strategy. During the first quarter, the company completed nearly $11 billion in acquisitions, expanding its presence in high-growth, high-margin markets and enhancing its long-term earnings potential.
The rapid expansion of AI-driven data centers presents a significant growth opportunity, as these facilities require greater power capacity and energy efficiency. Eaton continues to strengthen its position across the electrical power value chain while benefiting from robust demand in data center, utility, commercial aerospace and defense markets. Its diversified business portfolio, spanning industrial, utility, commercial, residential and aerospace end markets, helps reduce dependence on any single industry.
In addition, Eaton remains focused on improving operational efficiency and expanding margins through portfolio optimization, productivity initiatives and disciplined execution of its strategic growth plans.
Encouraging Estimates for EatonEaton now expects adjusted earnings per share in the range of $13.05-$13.50 for 2026 and organic revenue growth in the range of 9-11% in 2026.
The Zacks Consensus Estimate for 2026 and 2027 revenues indicates a 15.9% and 10.3% year-over-year increase, respectively. The same for 2026 and 2027 earnings implies a 10.4% and a 17.4% year-over-year increase, respectively. The expected long-term earnings growth rate is pegged at 11.7%.
Analyst Sentiment on EatonThe Zacks Consensus Estimate for ETN’s 2026 earnings per share has witnessed no movement in the last 30 days, while the same for 2027 has moved 2 cents north in the same time.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Emerson’s 2026 earnings per share has witnessed no movement in the last 30 days, while the same for 2027 has moved up 1 cent north in the same time.
The Zacks Consensus Estimate for Powell’s 2026 and 2027 earnings per share has witnessed no movement in the last 30 days.
Eaton’s Return on Equity Is Better Than the IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than its peers.
Eaton’s trailing 12-month return on equity is 24.72%, ahead of the industry average of 20.32%.
ETN’s Prudent Capital DeploymentEaton continues to balance growth investments with cash generation. Management expects operating cash flow of $5.0-$5.4 billion and free cash flow of $3.9-$4.3 billion in 2026, which supports continued reinvestment and shareholder returns over time.
ETN’s management has raised dividends five times in the past five years. The current annual dividend is $4.40 per share, reflecting a dividend yield of 1.1%.
Is Eaton’s Stock Expensive?Eaton’s shares are trading at a premium compared with its industry. The company’s forward 12-month price to earnings of 27.96X is higher than its industry’s 23.7X and above the median of 23.71X over the last five years.
Image Source: Zacks Investment Research
Eaton shares are more expensive than Emerson Electric but cheaper than Powell.
Parting Thoughts on ETNEaton continues to benefit from strong execution across its core businesses, supported by robust demand stemming from data center expansion. The company’s ongoing investments in research and development are driving innovation, strengthening its product portfolio, and enabling it to address evolving customer needs. In addition, strategic acquisitions are enhancing its technological capabilities, expanding its product offerings and increasing its exposure to high-growth markets.
Eaton’s investment outlook is supported by favorable earnings estimate revisions, healthy returns on investment, and a growing backlog that reflects sustained customer demand. However, given its premium valuation, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) will announce second quarter 2026 earnings on Friday, July 31, 2026, before the opening of the New York Stock Exchange. The company will host a conference call at 11 a.m. Eastern time that day to discuss second quarter 2026 earnings results.
The conference call will be available through a live webcast that can be accessed at Eaton.com/investor under “Presentations.” The call replay and news release will also be available at the same link.
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial and institutional, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.
Eaton (ETN - Free Report) closed the most recent trading day at $405.83, moving +1.57% from the previous trading session. This change outpaced the S&P 500's 0.81% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Shares of the power management company have appreciated by 6.42% over the course of the past month, outperforming the Industrial Products sector's gain of 0.86%, and the S&P 500's gain of 1.13%.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company is predicted to post an EPS of $3.08, indicating a 4.41% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8 billion, indicating a 13.88% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.33 per share and revenue of $31.8 billion, indicating changes of +10.44% and +15.87%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Eaton should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Eaton has a Forward P/E ratio of 29.97 right now. For comparison, its industry has an average Forward P/E of 22.4, which means Eaton is trading at a premium to the group.
One should further note that ETN currently holds a PEG ratio of 2.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.67 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
PITTSBURGH--(BUSINESS WIRE)--Intelligent power management company Eaton today announces a collaboration with FranklinWH to make intelligent, flexible home energy systems easier to buy, install and scale across North America. The integration of Eaton's AbleEdge™ smart breakers with the FranklinWH System helps improve energy affordability by enabling more flexible, intelligent and simplified energy management at home. The companies will help make it easier for contractors and homeowners to integr.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced that Dan T. Simpson has been named president, Global Energy Infrastructure Solutions (GEIS), effective July 6, 2026. In this role, Simpson will be responsible for leading Eaton's global GEIS business, the world leader in providing safe, reliable and efficient energy enablement of electrical infrastructure. He will report directly to Heath Monesmith, president and chief operating officer, Electrical Se.
Eaton Vance Tax-Managed Diversified Equity Income (ETY) remains a resilient, tax-efficient, covered call CEF for income-oriented, risk-averse investors. ETY has shifted its portfolio toward technology, now over 34% tech exposure, and adopted a monthly managed distribution policy yielding 8.16%. Management has enhanced option-writing tactics, shortening duration to 14 days and dynamically re-striking to mitigate low-volatility drag.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Eaton?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Eaton (ETN - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $3.09 a share, just 28 days from its upcoming earnings release on August 4, 2026.
ETN has an Earnings ESP figure of +0.58%, which, as explained above, is calculated by taking the percentage difference between the $3.09 Most Accurate Estimate and the Zacks Consensus Estimate of $3.08. Eaton is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ETN is just one of a large group of Industrial Products stocks with a positive ESP figure. DNOW (DNOW - Free Report) is another qualifying stock you may want to consider.
DNOW, which is readying to report earnings on August 5, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.09 a share, and DNOW is 29 days out from its next earnings report.
The Zacks Consensus Estimate for DNOW is $0.08, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +8.00%.
ETN and DNOW's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Eaton (ETN +3.62%) may be emerging as one of the most important infrastructure companies behind AI, electrification, and grid modernization. Its backlog, pricing power, and smart power systems suggest the company could be more than a traditional industrial stock, but the valuation leaves little room for disappointment.
*Stock prices used were the market prices of June 24, 2026. The video was published on July 4, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eaton Plc. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The Zacks Manufacturing - Electronics industry is well-positioned to benefit from solid momentum in the manufacturing sector, stable demand across the electronic services end market and increasing adoption of advanced manufacturing technologies. A surge in e-commerce activities is also likely to support the industry’s growth.
However, supply-chain issues have been weighing on the performance of some industry players. Eaton Corporation plc (ETN - Free Report) , Emerson Electric Co. (EMR - Free Report) , EnerSys (ENS - Free Report) and Franklin Electric Co., Inc. (FELE - Free Report) are a few industry participants that are expected to capitalize on the opportunities.
Industry Description The Zacks Manufacturing-Electronics industry comprises companies that manufacture electronic products like battery chargers, battery accessories, outdoor cabinet enclosures, power transmission products, electrical motion controls and motive power devices. Some industry players also provide water-treatment products, engineered flow components, process equipment and turn-key systems. These companies offer state-of-the-art customer support and after-market services to end users. The firms are increasing investments in developing innovative technologies, boosting customer and employee experience, and supply-chain modernization programs. The manufacturing electronic companies sell products and services in various end markets, including robotics, semiconductor, defense, aerospace, medical equipment and satellite communications.
4 Manufacturing Electronics Industry Trends in Focus Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the sixth consecutive month in June. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 53.3% in June. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 56% in the same month.
Strength in the Electronics Services Market: Demand across key end markets has been stable. Electronics manufacturers are steadily benefiting from the higher adoption of advanced manufacturing technologies and processes by original equipment manufacturers. The requirement for integrating advanced electronic components into machinery and electronic devices has been supporting the electronics manufacturing services market. In addition, a few industry players with wide exposure to the booming medical and life science markets are witnessing a positive momentum across their businesses due to sturdy demand for their products and solutions. A surge in the e-commerce business has also been boosting several industry participants’ prospects.
Technological Advancement Benefits: With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. With digitization, businesses are gaining a detailed insight into their operational performances, demand cycles, delivery status and supply-chain issues. This, in turn, is helping them bolster their competitiveness in the market with enhanced operational productivity, product quality and lower costs.
Supply-Chain Disruptions: Supply-chain disruptions, especially related to the availability of electrical and electronic components, have been concerning for the industry participants of late. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the seventh straight month in June. Supply-chain issues, if not controlled, might hinder the growth of diversified operation companies, going forward.
Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing – Electronics industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #77. This rank places it in the top 31% of 246 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Given the strong near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. However, it is worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Underperforms Sector & Outperforms S&P 500 The Zacks Manufacturing – Electronics industry has underperformed the broader sector while outperforming the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 11.8% compared with the sector’s rise of 13.4% and the S&P 500 Index’s increase of 8%.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing stocks, the industry is currently trading at 23.56X compared with the S&P 500’s 21.07X. However, it is above the sector’s P/E ratio of 21.98X.
Over the past five years, the industry has traded as high as 25.64X, as low as 14.22X and at the median of 20.99X, as the chart below shows.
Price-to-Earnings Ratio vs SP500
Price-to-Earnings Ratio vs Sector
4 Manufacturing Electronics Stocks to Keep a Tab on Eaton: Headquartered in Dublin, Ireland, Eaton is a diversified power management company and a global technology leader in electrical components and systems. ETN is benefiting from strong electrification-driven demand, reflected in rising orders and an expanding backlog. The company is also poised to gain from increased investments in capacity expansion and innovation initiatives.
Shares of this Zacks Rank #3 (Hold) company rose 11.2% in the past year. It beat estimates in three of the last four reported quarters, while matching the mark in one, delivering an average earnings surprise of 1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: ETN
Emerson: Based in St. Louis, MO, this global engineering and technology company offers a wide range of products and services to customers in the consumer, commercial and industrial markets. Emerson is witnessing solid momentum in the Final Control segment, driven by strength in the power end markets. Robust growth across the Americas bodes well for the Sensors segment. Solid performance of the power and life sciences end markets is driving the Control Systems & Software segment.
Shares of this Zacks Rank #3 company have inched up 0.5% in the past year. The company beat estimates in two of the last four reported quarters, while matching the mark in the other two, delivering an average earnings surprise of 1.1%.
Price and Consensus: EMR
EnerSys: Based in Pennsylvania, EnerSys is engaged in the manufacturing, marketing and distribution of various industrial batteries. ENS is well-positioned to benefit from solid momentum in the Specialty segment, driven by strong momentum in the aerospace and defense end market. The expansion of U.S. communications networks, fueled by AI-driven data demand within the Energy Systems segment, also bodes well for it.
Shares of EnerSys surged 134.5% in the past year. This Zacks Rank #3 company beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 4.4%.
Price and Consensus: ENS
Franklin Electric: Based in Fort Wayne, IN, Franklin Electric is engaged in providing water and fuel pumping systems to the industrial and petroleum equipment distributors, oil and utility companies and original equipment manufacturers. FELE is well-positioned to benefit from solid momentum in the Water Systems segment, driven by an increase in demand for all other surface pumping equipment and water treatment products. Also, higher demand for fuel management systems and pumping systems within the Energy Systems segment bodes well for it.
Shares of this Zacks Rank #3 company have soared 15.1% in the past year. The company beat estimates in three of the last four reported quarters and missed the mark in one, delivering an average earnings surprise of 2.6%.
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Vestas Wind Systems AS (VWDRY) and Eaton (ETN). But which of these two stocks presents investors with the better value opportunity right now?
Eaton (ETN - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this power management company have returned -2.1% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Manufacturing - Electronics industry, to which Eaton belongs, has gained 1.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Eaton is expected to post earnings of $3.07 per share for the current quarter, representing a year-over-year change of +4.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
For the current fiscal year, the consensus earnings estimate of $13.33 points to a change of +10.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $15.65 indicates a change of +17.4% from what Eaton is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Eaton.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Eaton, the consensus sales estimate of $8 billion for the current quarter points to a year-over-year change of +13.9%. The $31.8 billion and $35.08 billion estimates for the current and next fiscal years indicate changes of +15.9% and +10.3%, respectively.
Last Reported Results and Surprise HistoryEaton reported revenues of $7.45 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $2.81 for the same period compares with $2.72 a year ago.
Compared to the Zacks Consensus Estimate of $7.09 billion, the reported revenues represent a surprise of +5.16%. The EPS surprise was +2.55%.
Over the last four quarters, Eaton surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Eaton is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Eaton. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced its 2025 Sustainability Report, highlighting measurable progress and a sharper focus on driving impact at scale. As global power management demands become more complex, Eaton is advancing solutions that help customers operate more efficiently, strengthen resilience and reduce their environmental impact—while continuing to enhance transparency and accountability across its operations.
Highlights from Eaton’s sustainability report include:
Reduced Scope 1 and Scope 2 GHG emissions by 40% since 2018, up from 35% in 2024, with continued progress across the value chain 86% of sites certified as zero waste to landfill, with water mitigation measures implemented at water-stressed sites 96% of new products achieved a ‘Performer’ rating—Eaton’s standard for improved sustainability product performance Invested $2.1B in research and development of products and solutions that can enhance energy efficiency, improve safety, asset productivity and cost of ownership, among other customer requirements, since 2020, up from $1.7B in 2024, and progressing toward its goal to invest $3B by 2030. The report also outlines updated sustainability goals reflecting areas where the company can accelerate change at scale, while reaffirming existing commitments such as its Science Based Target initiative (SBTi)-validated net-zero emissions target for 2050.
“This report reflects the real, consistent progress we’re making—and how that progress is translating into practical solutions for our customers,” said Harold Jones, chief of staff and chief sustainability officer, Eaton. “As global demand for power accelerates, we’re focused on where we can have the greatest impact—helping customers use power more efficiently, strengthen resilience and reduce their environmental footprint, while continuing to reduce our own impact and hold ourselves accountable.”
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial and institutional, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.
BOSTON--(BUSINESS WIRE)--The following Eaton Vance closed-end funds (the “Funds”) announced distributions today as detailed below.
Municipal Bond Funds:
Fund
Ticker
Distribution
Change From
Prior
Distribution
Closing Market
Price – 06/30/26
Distribution
Rate at
Market Price
Eaton Vance California Municipal Income Trust
CEV
$0.0500
-
$10.52
5.70%
Eaton Vance Municipal Income Trust
EVN
$0.0513
-
$11.26
5.47%
Taxable Funds:
Fund
Ticker
Distribution
Change From
Prior
Distribution
Closing Market
Price – 06/30/26
Distribution
Rate at
Market Price
Eaton Vance Senior Income Trust
EVF
$0.0320
$0.0010
$4.98
7.71%
Eaton Vance Limited Duration Income Fund
EVV
$0.0706
($0.0001)
$9.37
9.04%
Municipal Bond Funds:
Fund
Ticker
Distribution
Change From
Prior
Distribution
Closing Market
Price – 06/30/26
Distribution
Rate at
Market Price
Eaton Vance Municipal Bond Fund
EIM
$0.0508
-
$9.96
6.12%
Eaton Vance Municipal Income 2028 Term Trust
ETX
$0.0782
-
$18.75
5.00%
Eaton Vance National Municipal Opportunities Trust
EOT
$0.0683
-
$17.62
4.65%
Taxable Funds:
Fund
Ticker
Distribution
Change From
Prior
Distribution
Closing Market
Price – 06/30/26
Distribution
Rate at
Market Price
Eaton Vance Floating-Rate Income Trust
EFT
$0.0660
($0.0010)
$10.80
7.33%
Eaton Vance Senior Floating-Rate Trust
EFR
$0.0690
$0.0030
$10.60
7.81%
Eaton Vance Short Duration Diversified Income Fund
EVG
$0.0738
($0.0001)
$10.78
8.22%
Funds Making Distributions Under a Managed Distribution Plan*:
Fund
Ticker
Distribution
Change From
Prior
Distribution
Closing Market
Price – 06/30/26
Distribution
Rate at
Market Price
Eaton Vance Enhanced Equity Income Fund
EOI
$0.1338
-
$19.66
8.17%
Eaton Vance Enhanced Equity Income Fund II
EOS
$0.1523
-
$22.04
8.29%
Eaton Vance Risk-Managed Diversified Equity Income Fund
ETJ
$0.0651
-
$8.27
9.45%
Eaton Vance Tax-Advantaged Dividend Income Fund
EVT
$0.1646
-
$27.68
7.14%
Eaton Vance Tax-Advantaged Global Dividend Income Fund
ETG
$0.1293
-
$23.54
6.59%
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund
ETO
$0.1733
-
$30.87
6.74%
Eaton Vance Tax-Managed Buy-Write Income Fund
ETB
$0.1058
-
$15.54
8.17%
Eaton Vance Tax-Managed Buy-Write Opportunities Fund
ETV
$0.0993
-
$14.88
8.01%
Eaton Vance Tax-Managed Diversified Equity Income Fund
ETY
$0.0992
-
$14.54
8.19%
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund
ETW
$0.0664
-
$9.64
8.27%
Eaton Vance Tax-Managed Global Diversified Equity Income Fund
EXG
$0.0657
-
$9.81
8.04%
* These Funds make distributions in accordance with a managed distribution plan. Under the managed distribution plan, a Fund issues a notice to shareholders and a press release containing information about the amount and sources of the distribution and other related information on payment date of the distribution. A Fund’s distributions in any period may be more or less than the net return earned by the Fund on its investments, and therefore should not be used as a measure of performance or confused with “yield” or “income.” Distributions in excess of Fund returns will cause its net asset value to erode. Investors should not draw any conclusions about a Fund’s investment performance from the amount of its distribution or from the terms of its managed distribution plan. A Fund’s Board of Trustees may amend or terminate the managed distribution plan at any time without prior notice to Fund shareholders.
Each Fund intends to make regular monthly cash distributions to its common shareholders (stated in terms of a fixed cents per common share dividend distribution rate). Each Fund’s ability to maintain its declared distribution amount will depend on a number of factors, including the amount and stability of investment income earned by the Fund; the performance of the Fund’s investments; the Fund’s expenses, including the cost of financing for Funds that employ leverage; underlying market conditions; realized and projected returns; and other factors. There can be no assurance that an unanticipated change in market conditions or other factors will not result in a change in a Fund’s distributions at a future time.
Shareholders should not draw any conclusions about a Fund’s investment performance from the amount of any monthly distribution. Each Fund’s distributions may be comprised of amounts characterized for U.S. federal income tax purposes as tax-exempt income, qualified and non-qualified ordinary dividends, capital gains and non-dividend distributions, also known as return of capital. A Fund may distribute more than its net investment income and net realized capital gains and, therefore, a distribution may include a return of capital. With each distribution, a Fund will issue a notice to its common shareholders containing information about the amount and sources of the distribution and other related information. Further information regarding Fund distributions will also be available prior to any applicable payment date at funds.eatonvance.com. The final determination of tax characteristics of each Fund’s distributions will occur after the end of the year, at which time it will be reported to the shareholders. Shareholders should not assume that the source of any distribution from a Fund is net income or profit, and the Fund’s distributions should not be used as a measure of performance or confused with “yield” or “income.”
Eaton Vance applies in-depth fundamental analysis to the active management of equity, income, alternative and multi-asset strategies. Eaton Vance’s investment teams follow time-tested principles of investing that emphasize ongoing risk management, tax management (where applicable) and the pursuit of consistent long-term returns. The firm’s investment capabilities encompass the global capital markets. Eaton Vance is a part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors’ expectations for future distribution changes, the clarity of the Fund’s investment strategy and future return expectations, and investors’ confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund’s investment objective, risks, charges and expenses.
Eaton Vance Enhanced Equity Income Fund (NYSE: EOI)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1338
Distribution Frequency:
Monthly
Fiscal Year End:
September
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0000
0.0%
$0.0000
0.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.1338
100.0%
$1.2042
100.0%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.0000
0.0%
Total per common share
$0.1338
100.0%
$1.2042
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
11.68%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.49%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
7.30%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
4.99%
Eaton Vance Enhanced Equity Income Fund II (NYSE: EOS)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1523
Distribution Frequency:
Monthly
Fiscal Year End:
December
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0000
0.0%
$0.0000
0.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.1523
100.0%
$0.4876
53.4%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.4262
46.6%
Total per common share
$0.1523
100.0%
$0.9138
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
11.01%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.23%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
7.05%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.01%
Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.0651
Distribution Frequency:
Monthly
Fiscal Year End:
December
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0000
0.0%
$0.0000
0.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0651
100.0%
$0.1057
27.0%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.2849
73.0%
Total per common share
$0.0651
100.0%
$0.3906
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
7.14%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
8.40%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
-0.32%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.50%
Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1646
Distribution Frequency:
Monthly
Fiscal Year End:
October
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0285
17.3%
$0.2236
17.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.1361
82.7%
$1.0932
76.7%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.0000
0.0%
Total per common share
$0.1646
100.0%
$1.3168
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
9.30%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
6.65%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
15.83%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.88%
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1733
Distribution Frequency:
Monthly
Fiscal Year End:
October
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.1053
60.8%
$0.5204
37.5%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0000
0.0%
$0.4601
33.2%
Return of Capital or Other Capital Source(s)
$0.0680
39.2%
$0.4059
29.3%
Total per common share
$0.1733
100.0%
$1.3864
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
10.71%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
6.07%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
14.95%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.54%
Eaton Vance Tax-Managed Buy-Write Income Fund (NYSE: ETB)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1058
Distribution Frequency:
Monthly
Fiscal Year End:
December
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0007
0.7%
$0.0084
1.3%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.1051
99.3%
$0.4229
66.6%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.2035
32.1%
Total per common share
$0.1058
100.0%
$0.6348
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
10.40%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.55%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
6.36%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.15%
Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE: ETV)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.0993
Distribution Frequency:
Monthly
Fiscal Year End:
December
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0000
0.0%
$0.0000
0.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0000
0.0%
$0.4141
69.5%
Return of Capital or Other Capital Source(s)
$0.0993
100.0%
$0.1817
30.5%
Total per common share
$0.0993
100.0%
$0.5958
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
10.18%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.43%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
5.97%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.10%
Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.0992
Distribution Frequency:
Monthly
Fiscal Year End:
October
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0000
0.0%
$0.0000
0.0%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0992
100.0%
$0.7936
100.0%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.0000
0.0%
Total per common share
$0.0992
100.0%
$0.7936
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
11.78%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.54%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
5.60%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
4.40%
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (NYSE: ETW)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.0664
Distribution Frequency:
Monthly
Fiscal Year End:
December
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0112
16.8%
$0.0379
9.5%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0515
77.6%
$0.0976
24.5%
Return of Capital or Other Capital Source(s)
$0.0037
5.6%
$0.2629
66.0%
Total per common share
$0.0664
100.0%
$0.3984
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
8.81%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.49%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
7.87%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.12%
Eaton Vance Tax-Advantaged Global Dividend Income (NYSE: ETG)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.1293
Distribution Frequency:
Monthly
Fiscal Year End:
October
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0762
58.9%
$0.2930
28.3%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0314
24.3%
$0.3194
30.9%
Return of Capital or Other Capital Source(s)
$0.0217
16.8%
$0.4220
40.8%
Total per common share
$0.1293
100.0%
$1.0344
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
11.39%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
6.03%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
15.33%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
3.52%
Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE: EXG)
Distribution Period:
June- 2026
Distribution Amount per Common Share:
$0.0657
Distribution Frequency:
Monthly
Fiscal Year End:
October
Source
Current Distribution
% of Current
Distribution
Cumulative
Distributions
for the
Fiscal Year-
to-Date
% of the Cumulative
Distributions for the
Fiscal Year-to-Date
Net Investment Income
$0.0169
25.8%
$0.0490
9.3%
Net Realized Short-Term Capital Gains
$0.0000
0.0%
$0.0000
0.0%
Net Realized Long-Term Capital Gains
$0.0488
74.2%
$0.4766
90.7%
Return of Capital or Other Capital Source(s)
$0.0000
0.0%
$0.0000
0.0%
Total per common share
$0.0657
100.0%
$0.5256
100.0%
Average annual total return at NAV for the 5-year period ended on May 31, 2026 1
9.53%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2026 2
7.59%
Cumulative total return at NAV for the fiscal year through May 31, 2026 3
11.53%
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 2026 4
4.43%
1 Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on May 31, 2026
2 The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund's NAV as of May 31, 2026
3 Cumulative total return at NAV is the percentage change in the Fund's NAV for the period from the beginning of its fiscal year to May 31, 2026 including distributions paid and assuming reinvestment of those distributions.
4 Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to May 31, 2026 measured on the dollar value of the distributions in year-to-date period as a percentage of the Fund's NAV as of May 31, 2026
On June 30, 2026, Eaton Corp PLC (ETN) shares rose 4.4% to a current price of $426.12. The stock has demonstrated robust performance recently, with a 52-week ra
In the latest close session, Eaton (ETN - Free Report) was down 4.09% at $402.68. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Shares of the power management company witnessed a gain of 4.46% over the previous month, trailing the performance of the Industrial Products sector with its gain of 11.11%, and outperforming the S&P 500's loss of 1.42%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.07, signifying a 4.07% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8 billion, up 13.88% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.33 per share and a revenue of $31.8 billion, representing changes of +10.44% and +15.86%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eaton. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Right now, Eaton possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 31.51. This denotes a premium relative to the industry average Forward P/E of 23.76.
Investors should also note that ETN has a PEG ratio of 2.7 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.8.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
As the world pivots toward massive electrification and the energy-hungry demands of artificial intelligence, choosing between Eaton (ETN 3.94%) and Vertiv (VRT 6.21%) requires a look at two different infrastructure giants.
Both companies provide essential equipment for the electrical grid and modern data centers, yet they occupy different niches in the value chain. Eaton focuses on a broad range of power management across industrial and aerospace sectors, while Vertiv specializes in cooling and power systems specifically for digital infrastructure. This contrast makes them a popular comparison for investors looking to play the long-term electrification trend.
The case for EatonEaton is a major player among industrial stocks that focus on intelligent power management. Following its 2026 divestiture of its Mobility Group to Dana, it focuses on electrical infrastructure, data centers, and aerospace. Customer concentration like this adds a layer of risk, as 22% of Electrical segment sales in 2025 came from just six large customers. Additionally, the Aerospace segment derived 20% of its sales from three aircraft original equipment manufacturers.
In FY 2025, revenue reached nearly $27.4 billion, reflecting growth of roughly 10.3% compared to the previous year. Net income for the same period was approximately $4.1 billion, representing a net margin of 14.9%. This performance followed a positive upward trend from a net income of roughly $3.2 billion in fiscal year 2023. The company strategy involves leveraging its massive scale to provide end-to-end solutions for utilities and data center operators.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.1x, a metric comparing total debt to shareholder equity. The current ratio is roughly 1.3x, which compares short-term assets to short-term liabilities to measure liquidity. Free cash flow (cash from operations minus capital spending) was close to $3.6 billion for the year. This cash generation supports consistent research and development in power management technologies.
The case for VertivVertiv is a global leader in critical digital infrastructure, providing power and cooling technologies to the tech sector. It serves major technology firms like Microsoft, Amazon, and Alphabet to support their massive cloud and artificial intelligence infrastructure. Because it relies on these capital expenditure cycles, its performance is tied to the spending of large-scale technology firms. As data centers transition to high-density racks, the focus on liquid-cooling and power management becomes increasingly vital.
For FY 2025, revenue was nearly $10.2 billion, reflecting a significant growth of approximately 27.7% over the prior year. Net income for the period was close to $1.3 billion, yielding a net margin of 13.0%. This was a sharp increase from the $495.8 million in net income reported in fiscal year 2024. The rapid expansion of artificial intelligence infrastructure has been a primary driver of this top-line and bottom-line growth.
Based on its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.9x. The current ratio is approximately 1.5x, indicating the company has $1.50 in short-term assets for every $1.00 in short-term obligations. Free cash flow (cash from operations after subtracting capital expenditures) was nearly $1.9 billion for FY 2025. This liquidity provides the company with capital to pursue its active acquisition strategy and expand its technological capabilities.
Risk profile comparisonEaton faces risks from supply chain and raw material volatility, particularly for commodities like steel and copper. It also deals with cybersecurity and data privacy threats as it integrates connected technologies into its products. Additionally, trade restrictions or tariffs could increase manufacturing costs for its global operations. Failure to keep pace with rapid advancements in AI and data center infrastructure could also erode its market position over time.
Vertiv is highly dependent on continued data center and artificial intelligence spending. A downturn in demand from major clients or shifts in investment priorities could materially reduce its sales. The company also faces challenges integrating its recent acquisitions and managing supply chain pressures for its liquid-cooling products. Furthermore, it faces intense competition from large-scale global competitors like Schneider Electric and its industry peer, Eaton.
Valuation comparisonEaton appears to be the more conservatively valued option based on its lower Forward P/E and P/S ratio compared to its high-growth peer.
MetricEatonVertivSector BenchmarkForward P/E30.4x49.1x31.3xP/S ratio5.7x12.0xSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
This is a tough call. Both companies are riding the same powerful tailwind of insatiable demand for power and infrastructure driven by AI data centers and electrification. And both are executing at a high level right now.
But I'd go with Eaton. Vertiv is an extraordinary growth story. Orders are surging, its backlog has more than doubled, and the company sits at the center of the AI data center build-out as a provider of power and cooling infrastructure. The momentum is hard to argue with.
Eaton, though, offers something Vertiv doesn't: breadth. Its electrical business is booming alongside data center demand, but it also benefits from aerospace, grid modernization, and industrial electrification. That diversification makes it a more comfortable long-term hold. Eaton just raised its organic growth guidance and reported record results, and it has paid dividends every year since 1923.
Sometimes the steadier, broader bet is also the smarter one.
A popular saying in professional sports is that Father Time is undefeated. The clock stops for no professional athlete. The same can be true of the current data center buildout.
A recent JPMorgan Chase report states that more than 60% of the planned data center capacity for 2027 has not yet been started. An additional 7% of projects under construction are being delayed by supply chain bottlenecks, permitting hurdles, and power shortages.
Investors who focus on FUD (fear, uncertainty, and doubt) argue that the shift out of technology stocks, particularly hyperscaler stocks, is evidence that the data center story is falling apart.
Get Eaton alerts:
But the recent earnings season refuted that point of view. Demand is real. The money is committed. In the last quarter, the four major hyperscalers raised their combined AI-related capital expenditures to $750 billion for this calendar year. That demand is expected to reach $1 trillion in 2027.
But the one factor that investors can’t control is the time it takes to actually build the data centers. The story has gotten ahead of the shovels.
Data Center Backlog Stocks Could Be the Bigger AI TradeA more likely reason for the selloff is rotation into the stocks of companies that are essential to filling this backlog. The companies supplying the equipment needed to build new facilities stand to be the largest beneficiaries.
One option for investors is to look at exchange-traded funds (ETFs) tied to physical data center infrastructure. One example is the Global X U.S. Infrastructure Development ETF BATS: PAVE, which is up 22% in 2026 as of this writing.
However, investors may do better by investing in individual stocks within these funds. That can provide the opportunity for market-beating gains and, in some cases, dividends that can beat the performance of a single fund.
Eaton Is Turning AI Data Center Spend Into Backlog GrowthEaton Today
$403.94 -15.93 (-3.79%)
As of 11:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$311.92▼
$436.74Dividend Yield1.09%
P/E Ratio39.35
Price Target$420.95
Eaton NYSE: ETN sells the electrical guts inside an AI data center. Think of switchgear, UPS systems, busways, and power distribution units that connect the grid to the server racks. The Q1 2026 numbers tell the story. In Eaton’s Electrical Americas segment, data center orders surged roughly 240% year over year, while data center revenue in the segment grew about 50%.
That growth is likely to accelerate. Eaton closed the Boyd Thermal acquisition to expand into liquid cooling. The company is also collaborating with NVIDIA NASDAQ: NVDA on the Beam Rubin DSX platform for AI factories. Plus, a planned Reverse Morris Trust deal will spin off Eaton's Mobility Group. That leaves a more focused Electrical and Aerospace business aligned squarely with AI buildout demand.
ETN is up 28% year-to-date, which lands it within 5% of its consensus price target. However, since the company’s Q1 2026 earnings report, analysts have been aggressively raising their price targets.
Why Quanta Services Offers the Clearest Backlog VisibilityQuanta Services Today
PWR
Quanta Services
$701.12 -17.47 (-2.43%)
As of 11:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$363.01▼
$788.75Dividend Yield0.06%
P/E Ratio95.86
Price Target$733.87
Quanta Services NYSE: PWR does the physical work that turns a data center site plan into delivered power. The company builds high-voltage transmission lines, substations, and load centers. At its 2026 Investor Day, management outlined a $2.4 trillion addressable market through 2030.
The backlog supports that forecast. Quanta exited Q4 with a $44 billion backlog, up 27.5% year-over-year. Management now guides for 15% to 20% annual EPS (earnings per share) growth through 2030. Internal training programs have built a skilled-labor moat that smaller rivals struggle to match. That gives PWR pricing power as electricians and linemen become scarce.
PWR is up over 65% year-to-date, and like ETN, it’s within about 5% of its consensus price target. But analyst sentiment is bullish, and the chart is constructive, with support at the 50-day simple moving average (SMA) and a MACD on the cusp of reversing.
Vertiv Turns AI Heat and Power Demand Into Backlog GrowthVertiv Today
$306.74 -18.83 (-5.78%)
As of 11:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$110.06▼
$379.93Dividend Yield0.08%
P/E Ratio76.48
Price Target$326.39
Vertiv NYSE: VRT sells the power and thermal infrastructure inside the building. Once Quanta finishes the grid work, Vertiv's UPS systems, switchgear, racks, and liquid cooling take over. Roughly 75% of revenue now comes from data center customers. Q1 2026 revenue grew 30% to $2.65 billion. Project backlog more than doubled to over $15 billion.
Management raised its full-year guidance to $13.5 to $14 billion in net sales. Recent acquisitions of Strategic Thermal Labs and ThermoKey extend Vertiv from chip-level cold plates to facility-scale heat rejection. Vertiv was also named a Tier 1 partner on Hut 8's NASDAQ: HUT gigawatt-scale Beacon Point AI campus. Each hyperscaler win reinforces the picks-and-shovels thesis.
VRT is up over 95% in 2026 and is also trading within 5% of its consensus price target. The company also has the most mixed analyst picture of the three stocks on this list. But investors willing to play the long game should consider VRT's potential for strong dividend growth in the coming years.
Should You Invest $1,000 in Eaton Right Now?Before you consider Eaton, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Eaton wasn't on the list.
While Eaton currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
On a recent episode of the Animal Spirits podcast titled Talk Your Book: AI Is Not a Bubble, Alger portfolio manager Dr. Ankur Crawford made a deceptively simple argument that cuts against most of the current debate over AI valuations: investors are arguing about the price-to-earnings ratio without first agreeing on what the earnings actually are.
“The first thing you need to get right when you think about valuation is the E. Only then can you come up with a PE,” Crawford said. She runs a concentrated 30-name portfolio and targets companies she believes can double or triple over a roughly three-year horizon. She contends that sell-side models are linear extrapolations bolted onto an exponential capex cycle, leaving Street estimates “just too low” across the AI supply chain.
The Case Study: GE Vernova Crawford pointed to GE Vernova (NYSE: GEV | GEV Price Prediction) as the cleanest illustration. Only three companies make combined-cycle gas turbines globally, GE Vernova holds roughly a third of that market, and pricing has doubled from about $1,250 to $2,500 per megawatt in under a year as hyperscalers scramble for firm power.
The financials support the framing. Q1 2026 revenue came in at $9.34 billion, beating the $9.3 billion consensus, while organic orders jumped 71%. The Electrification segment booked $2.4 billion in data center equipment orders in a single quarter, more than all of 2025. Backlog hit a record $150 billion at year-end 2025 and grew $13 billion sequentially in Q1. CEO Scott Strazik told investors the company expects to reach at least 110 GW of combined gas turbine backlog and slot reservations by year-end 2026.
The stock has run hard, up 72.84% year-to-date and 132.18% over the past year, trading at a forward P/E of 40x. Crawford’s point is that this multiple is built on consensus EPS, and consensus has missed Vernova’s revenue every quarter shown in the data, with beats ranging from 0.36% to 9.17%.
The Picks-and-Shovels Backlog The same pattern shows up across the AI power buildout. Vertiv Holdings (NYSE: VRT) posted Q4 2025 organic orders growth of 252% year over year, lifting backlog to $15.0 billion, and has beaten EPS estimates by between 4.62% and 25.01% across three quarters. Eaton (NYSE: ETN) saw Electrical Americas’ trailing 12-month organic order growth accelerate from 7% in Q3 2025 to 42% in Q1 2026, with electrical backlog up 48%.
On the generation side, Constellation Energy (NASDAQ: CEG) closed the Calpine acquisition in January 2026, expanding total supply to 93,330 GWhs and reaffirming 2026 adjusted operating EPS guidance of $11.00 to $12.00. The company is targeting 20%+ base EPS growth through 2029, anchored by long-term PPAs with Microsoft, Meta, and CyrusOne.
And Where NVIDIA Fits The compute layer tells the same story. NVIDIA (NASDAQ: NVDA) reported Q1 FY2027 revenue of $81.615 billion, up 85.23% year over year, with Data Center revenue of $75.246 billion and Data Center Networking up 199%. CEO Jensen Huang called the moment “the largest infrastructure expansion in human history.” EPS has beaten consensus for four straight quarters, with the margin widening from 3.96% to 5.42%.
That is Crawford’s “wrong E” in a sentence. Revenue growth is accelerating from 55.6% to 85.23% while consensus models assume moderation, and operating income is compounding faster still, up 147.42% in Q1 FY2027 on margin expansion.
What Investors Should Watch Co-host Ben Carlson noted on the podcast that most investors are still asking, “Is it too far too fast?” while Crawford is focused on the underlying business fundamentals, not the stock price. The Department of Energy projects data centers could account for up to 12% of U.S. electrical demand by 2028, a structural backdrop that informs why turbine pricing, backlog visibility, and Power Purchase Agreement (PPA) economics matter more than trailing P/E ratios. Reddit sentiment on Vernova has slipped to neutral-to-bearish over the past month as retail investors fixate on the price chart, the exact gap between price action and earnings power that Crawford says creates opportunity.
On June 22, 2026, Eaton Corp PLC ETN shares rose 3.3% to a current price of $435.78. This price is near the upper range of the stock's 52-week performance, which saw a low of $311.92 and a high of $436.74.
GF Value™ verdict: Currently overvalued by 12.8% with a fair value estimate of $386.36.GF Score™ of 89/100 indicates a strong overall performance based on various fundamental factors.Insider activity shows a notable selling trend with $8.6 million sold against $0.4 million bought in the last three months. Is ETN Overvalued or Undervalued? The current price of Eaton Corp PLC ETN at $435.78 is significantly higher than its GF Value™ estimate of $386.36, indicating the stock is overvalued by approximately 12.8%. With a GF Valuation label of "Modestly Overvalued," this suggests that the stock may not offer an attractive margin of safety at its current price level. Investors looking for potential value may find this high valuation risky, as it implies that the stock is priced above its intrinsic value based on GF Value™ methodology, which considers historical trading multiples, past business growth, and future performance estimates.
Given that the stock is overvalued, there is a risk associated with entering a position at this price point. Should market conditions shift or if company performance does not meet expectations, the stock could experience a decline to align more closely with its estimated fair value.
How Does ETN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 42.6x 32.2x Forward P/E 32.9x N/A The current P/E (TTM) of 42.6x is substantially above the 5-year median P/E of 32.2x, indicating that ETN is trading at a premium relative to its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being overvalued, suggesting that the stock is trading at a higher valuation multiple compared to its past performance.
What Does ETN's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 7/10 Momentum 8/10 The GF Score™ of 89/100 suggests that Eaton Corp PLC is well-positioned for potential long-term returns. The strongest area is growth, with a score of 9/10, indicating robust growth potential. Profitability is also strong at 8/10. However, the weakest metric is financial strength, rated at 5/10, which could be a concern for risk-averse investors.
What Are Insiders Doing with ETN Stock? In the last three months, insider activity has shown a significant selling trend, with $8.6 million worth of shares sold against only $0.4 million purchased. This pattern suggests that insiders may have a cautious outlook on the stock's future performance, as they are more inclined to sell than buy at the current valuation levels. This could raise concerns among potential investors regarding the stock's prospects.
What This Means for Investors Based on the GF Value™ assessment, Eaton Corp PLC ETN is currently overvalued. With the stock trading at a premium compared to its estimated fair value, potential investors may need to exercise caution and consider the risks associated with this high valuation.
For the complete analysis, visit the Eaton Corp PLC ETN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ETN's GF Score™?
ETN's GF Score™ is 89/100, indicating a strong overall performance based on key fundamental factors.
Is ETN overvalued or undervalued?
ETN is currently overvalued, with a GF Value™ estimate of $386.36 compared to the current price of $435.78.
What is ETN's P/E ratio?
ETN's P/E (TTM) is 42.6x, which is 32% above its 5-year median P/E of 32.2x, indicating a higher valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Vestas Wind Systems AS (VWDRY - Free Report) or Eaton (ETN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Vestas Wind Systems AS has a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This means that VWDRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VWDRY currently has a forward P/E ratio of 19.60, while ETN has a forward P/E of 30.60. We also note that VWDRY has a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN currently has a PEG ratio of 2.62.
Another notable valuation metric for VWDRY is its P/B ratio of 5.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ETN has a P/B of 8.01.
Based on these metrics and many more, VWDRY holds a Value grade of B, while ETN has a Value grade of D.
VWDRY stands above ETN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VWDRY is the superior value option right now.
Eaton (ETN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this power management company have returned +7.9%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Manufacturing - Electronics industry, which Eaton falls in, has gained 5.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Eaton is expected to post earnings of $3.07 per share for the current quarter, representing a year-over-year change of +4.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
For the current fiscal year, the consensus earnings estimate of $13.33 points to a change of +10.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $15.64 indicates a change of +17.4% from what Eaton is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Eaton.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Eaton, the consensus sales estimate of $8 billion for the current quarter points to a year-over-year change of +13.9%. The $31.8 billion and $35.07 billion estimates for the current and next fiscal years indicate changes of +15.8% and +10.3%, respectively.
Last Reported Results and Surprise HistoryEaton reported revenues of $7.45 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $2.81 for the same period compares with $2.72 a year ago.
Compared to the Zacks Consensus Estimate of $7.09 billion, the reported revenues represent a surprise of +5.16%. The EPS surprise was +2.55%.
Over the last four quarters, Eaton surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Eaton is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Eaton. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Eaton (ETN - Free Report) closed at $421.77, marking a +2.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.
Shares of the power management company have appreciated by 7.89% over the course of the past month, outperforming the Industrial Products sector's gain of 5.53%, and the S&P 500's gain of 0.29%.
The investment community will be closely monitoring the performance of Eaton in its forthcoming earnings report. The company's upcoming EPS is projected at $3.07, signifying a 4.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8 billion, indicating a 13.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.33 per share and a revenue of $31.8 billion, representing changes of +10.44% and +15.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Eaton. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Eaton is presently trading at a Forward P/E ratio of 30.74. This expresses a premium compared to the average Forward P/E of 22.94 of its industry.
It's also important to note that ETN currently trades at a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways Rockwell has an edge over Eaton, supported by positive analyst sentiment and stronger price performance.Eaton benefits from data center demand, R&D investments, acquisitions and broad end-market exposure.Rockwell's recurring revenues, pricing actions, product expansion and growth investments support demand. Rising investments in automation, artificial intelligence, industrial software, robotics and digital infrastructure are driving industrial tech stocks like Eaton Corporation (ETN - Free Report) and Rockwell Automation (ROK - Free Report) .
Eaton is a diversified power management company and a global technology leader in electrical components and systems, while Rockwell Automation is the world’s largest company dedicated to industrial automation and digital transformation.
Expanding demand for electrification, data centers and advanced manufacturing is opening up significant new avenues for growth across the industry. As businesses continue to modernize their operations and embrace next-generation technologies, companies with solid recurring revenue models, innovative product offerings and exposure to long-term digital transformation trends are well-positioned to capitalize on these opportunities.
For long-term investors, which stock offers the more compelling opportunity? Let’s take a closer look at both companies' fundamentals.
Factors to Consider for ETNEaton is well-positioned to benefit from several long-term growth drivers, including grid modernization, data center expansion, industrial automation, energy transition, and the recovery of aerospace markets. Its strong and growing backlog reflects healthy customer demand and underscores the company's ability to provide mission-critical power management solutions across diverse end markets.
The company has articulated a clear growth strategy focused on innovation and sustainability. Over the next decade, Eaton plans to invest approximately $3 billion in research and development to create advanced, energy-efficient technologies and sustainable solutions. These investments are intended to address evolving customer needs, strengthen existing product offerings and reinforce the company’s competitive position across global markets.
Eaton is also expanding its growth platform through strategic acquisitions. During the first quarter, the company completed nearly $11 billion in acquisitions aimed at increasing its presence in attractive, high-growth and high-margin markets. These transactions are expected to enhance Eaton’s long-term earnings potential and support sustained value creation.
The rapid growth of AI-driven data centers presents a significant opportunity for Eaton, as these facilities require substantially greater power capacity and energy density. The company is expanding its participation across the electrical power value chain while benefiting from strong demand in both data center and utility markets. It is also seeing continued momentum in commercial aerospace and defense. Furthermore, Eaton’s diversified exposure across commercial, industrial, utility, aerospace, and residential markets reduces dependence on any single industry or customer base.
In addition, Eaton remains focused on improving operational performance through productivity initiatives, portfolio optimization and disciplined integration of acquisitions. These efforts, combined with a favorable end-market backdrop and continued investment in innovation, position the company to drive margin expansion, strengthen its competitive advantages and deliver sustainable long-term growth.
Return on equity is 24.72%, ahead of the industry average of 20.35%. ETN has gained 18.2% in the past three months.
Factors to Consider for ROKRockwell Automation is poised to benefit from long-term growth drivers such as factory automation, manufacturing reshoring, industrial digitization, and the increasing adoption of smart manufacturing solutions. Its competitive advantage stems from a broad portfolio of automation hardware, software, and services, anchored by the market-leading Allen-Bradley control systems and FactoryTalk software platform.
The company is a key enabler of Industry 4.0, helping manufacturers build connected, intelligent factories where machines, systems, and employees interact seamlessly in real time. Growing investments in Industrial Internet of Things (IIoT), artificial intelligence and advanced analytics are driving demand for Rockwell’s solutions. Strategic alliances with Microsoft, PTC and NVIDIA further strengthen its digital capabilities and expand its reach beyond traditional automation markets.
Rockwell is also benefiting from rising capital investments across attractive end markets, including life sciences, electric vehicles, battery manufacturing, semiconductors, food and beverage, and logistics automation. In addition, government-backed initiatives promoting domestic manufacturing in North America and Europe are supporting demand for modern production facilities and automation technologies.
Management recently increased its fiscal 2026 sales and earnings outlook, reflecting stronger demand, productivity improvements and pricing actions that are expected to offset inflationary and tariff-related pressures. The company has enhanced its software and recurring revenue mix through acquisitions such as Plex, which expanded its cloud-based manufacturing software capabilities, and CUBIC, which strengthened its electrical systems and intelligent motor control offerings. The exit from the underperforming Sensia joint venture has further streamlined the portfolio.
Rockwell’s planned $2 billion investment in manufacturing capacity, digital infrastructure, and workforce development should enhance operational resilience and support future growth. Supported by strong cash generation, expanding software and services revenues, and a disciplined capital allocation strategy that includes dividends and share repurchases, Rockwell remains well-positioned to create long-term shareholder value.
ROK’s return on equity of 37.5% lags the industry average. ROK shares have gained 33.4% in the past three months.
Estimates for ETN and ROKThe Zacks Consensus Estimate for ETN’s 2026 revenues implies a year-over-year increase of 15.8%, while that for EPS implies a year-over-year increase of 10.4%. EPS estimates witnessed no movement in the past 30 days. The expected long-term earnings growth rate is pegged at 11.7%. The company has a Growth Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROK’s 2026 revenues implies a year-over-year increase of 7.4%, and that for EPS implies a year-over-year increase of 22.2%. EPS estimates have moved 1% north in the past 30 days. The expected long-term earnings growth rate is pegged at 12%. The company has a Growth Score of B.
Image Source: Zacks Investment Research
Are ETN and ROK Shares Expensive?Eaton is trading at a forward 12-month price to earnings of 29.28X, above the median of 26.41X over the last three years.
Rockwell is trading at a forward 12-month price to earnings of 33.83X, above the median of 26.45X over the last three years.
Rockwell shares are more expensive than Eaton's.
Image Source: Zacks Investment Research
ConclusionEaton continues to deliver strong performance across its core businesses while benefiting from rising demand tied to data center expansion. Focusing on research and development supports innovation, improves its product portfolio, and enables it to better meet changing customer requirements. Additionally, strategic acquisitions are enhancing Eaton’s capabilities, broadening its product offerings, and increasing its reach across attractive growth markets.
Rockwell Automation is seeing steady demand across discrete, hybrid and process markets, supported by its diversified portfolio. The company will benefit from recent wins across diverse end markets, rising recurring revenues, pricing discipline, expanding portfolio of products, growth investments and acquisitions.
Rockwell carries a Zacks Rank #2 (Buy), while Eaton carries a Zacks Rank #3 (Hold). Given positive analyst sentiment and price performance, Rockwell has an edge over Eaton.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Eaton will combine its Mobility Group with Dana to create a company valued at more than $10B.The deal sharpens Eaton's focus on higher-growth, higher-margin Electrical and Aerospace segments.Eaton will receive $1.1B in cash, while shareholders will own at least 50.1% of the company. Eaton Corporation (ETN - Free Report) has announced an agreement with Dana Incorporated to combine its Mobility Group with Dana through a Reverse Morris Trust (RMT) transaction. This will aid Eaton in its ongoing portfolio transformation and support its 2030 growth strategy. The transaction will create a combined company valued at more than $10 billion and further streamline Eaton’s business portfolio.
The move strengthens Eaton’s focus on its higher-growth, higher-margin Electrical and Aerospace segments. The company’s long-term strategy is centered on benefiting from major secular growth drivers, including electrification, digitalization, AI-powered data center expansion, infrastructure modernization, aerospace aftermarket demand and increased defense spending. Over the years, Eaton has steadily reduced its reliance on cyclical automotive markets and shifted toward intelligent power management and electrical solutions, resulting in stronger margins, improved recurring revenue visibility and enhanced cash flow generation.
The Dana transaction represents another milestone in Eaton’s portfolio optimization efforts. By combining its Mobility business with Dana, Eaton separates a mature automotive operation while retaining exposure to vehicle electrification opportunities through ownership and strategic participation in the new entity. Eaton’s Mobility Group is valued at approximately $5.1 billion, while the combined company is expected to generate about $11 billion in pro forma revenues and $1.7 billion in adjusted EBITDA in 2026.
Per the agreement, Eaton will receive approximately $1.1 billion in cash, and its shareholders will own at least 50.1% of the combined company. The deal is also expected to generate around $250 million in annual run-rate synergies. Expected to close in the first quarter of 2027, the transaction should immediately enhance Eaton’s organic growth profile and operating margins.
Overall, the deal reinforces Eaton’s transformation into a more focused electrification and power management leader positioned to capitalize on long-term infrastructure and energy transition trends.
What About ETN’s Peers?Emerson Electric (EMR - Free Report) continues to strengthen its market presence, customer base, and product portfolio through strategic acquisitions. These deals have enabled Emerson to enhance its automation capabilities and enter new markets. At the same time, Emerson is divesting non-core and underperforming businesses, which enables it to focus resources more effectively on its core operations.
Powel Industries (POWL - Free Report) is benefiting from global electrification and digitalization trends. Powel’s expanding presence across the electrical power value chain has driven strong bookings from utility and industrial markets. Additionally, Powel’s acquisition of Remsdaq strengthens its automation capabilities, enabling it to deliver more comprehensive electrical automation solutions to utility customers.
ETN Price PerformanceShares of Eaton have gained 28.7% year to date, outperforming the industry.
Image Source: Zacks Investment Research
ETN’s Expensive ValuationEaton’s shares are trading at a premium compared with its industry. The company’s forward 12-month price to earnings of 28.3X is higher than its industry’s 24.65X and above the median of 26.41X over the last three years.
Image Source: Zacks Investment Research
No Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s second-quarter and third-quarter 2026 EPS has witnessed no movement over the past seven days. The same holds true for 2026 and 2027 EPS estimates.
NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed merger of Dana Incorporated (NYSE: DAN) and Eaton Corporation plc (NYSE: ETN). Upon completion of the proposed transaction, Dana shareholders will own approximately 49.9% of the combined company. KSF is seeking to determine whether the merger and the process that led to it are adequate, or whether the merger is fair to Dana shareholders.
If you would like to discuss your legal rights regarding the proposed transaction, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-dan/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
The AI buildout’s real bottleneck is the steel, copper, and chilled water surrounding the GPUs. The stock at the center of that story just pulled back, and Investor’s Business Daily flagged the chart as a textbook setup. Comfort Systems USA (NYSE:FIX | FIX Price Prediction) Comfort Systems carries a composite rating of 97, an EPS rating of 99, and an RS rating of 95, yet sits roughly 10% off its highs after staging an upside reversal on the weekly chart. Five names below sit directly in the line of fire of the AI cooling capex wave. If the cooling capex wave plays out, these are the names positioned to capture it.
1. Comfort Systems USA: The HVAC Contractor Hiding an AI Backlog Most investors hear “mechanical contractor” and tune out. They shouldn’t. Comfort Systems USA is the team that physically builds the cooling guts of hyperscale data centers, and data center and technology infrastructure now accounts for roughly 45% of company revenue. The host on Stock Market Today With IBD put it bluntly: “I am looking at getting into this one myself. So maybe tomorrow, we’ll see.” Both IBD’s Swing Trader and Leaderboard already hold the name.
The Q1 FY2026 earnings report is the engine behind the setup. EPS landed at $10.51 versus $6.81 consensus, a 54% beat, marking four consecutive quarters of consensus beats. Organic revenue growth hit 51% year-over-year, and backlog swelled to $12.45 billion, nearly double the $6.89 billion from a year earlier. The chart pause is what IBD loves: “This was a nice little flat area letting that moving average line really kind of catch up to it.”
The kicker: this is the contractor. The equipment going into those buildings is sourced from a separate set of suppliers, and the order books at those vendors tell an even louder story.
2. Eaton: The Power Half of the Equation Caught a Cooling Tailwind Eaton (NYSE:ETN) has long been the electrical backbone story. The new wrinkle: in Q1 FY2026 the company closed $11 billion in acquisitions, including $9.55 billion for Boyd Thermal, a direct bet that thermal management is the next leg of data center spend. Reddit caught the angle before the sell side did. A wallstreetbets thread titled “Eaton (ETN) – The unseen datacenter power infrastructure play the market is too regarded to appreciate” drove the ticker’s sentiment score to 82, very bullish.
The fundamentals back it. Electrical Americas orders rose 42% organically on a 12-month rolling basis, driven by data center demand. Total Electrical backlog expanded 48%, and management raised FY2026 adjusted EPS guidance to $13.05 to $13.50. Shares are up 23% year to date but down about 4% over the past month, putting the multiple back inside reach.
Eaton is the diversified giant. The next name is the pure-play that institutions added to the S&P 500 this spring, and it just gave investors a window to buy it on sale.
3. Vertiv Holdings: The S&P 500 Add With a $15 Billion Order Book If there is an obvious heavyweight in AI cooling, it’s Vertiv Holdings (NYSE:VRT). The company designs the precision power and liquid cooling systems that hyperscalers order by the rack. It joined the S&P 500 in March 2026, and the order book has gone vertical: Q4 FY2025 organic orders surged 252% year-over-year, the strongest order quarter in company history, lifting backlog to $15.0 billion with a book-to-bill around 2.9x.
Q1 FY2026 carried the momentum forward. Adjusted EPS hit $1.17 versus $1.01 consensus, Americas organic revenue jumped 53%, and free cash flow surged to $652.8 million, up 147%. Management responded by raising FY2026 guidance to $13.5 billion to $14.0 billion in net sales with adjusted EPS of $6.30 to $6.40. CEO Giordano Albertazzi told investors: “data center infrastructure requirements evolve significantly… customers prioritizing optimized design, deployment speed, and operational efficiency… positioned to be the partner customers need.”
Here’s the entry: shares are down 18% over the past month despite being up 87% year to date. Reddit chatter spiked accordingly, with the highest activity score in the dataset on June 5 alongside a bullish 68 sentiment reading.
4. nVent Electric: The Quiet Backlog Story nVent Electric (NYSE:NVT) does not get the billboards, but it sells the racks, enclosures, and connection systems that physically host AI servers. CEO Beth Wozniak framed Q1 directly: “tremendous start to the year with record sales and orders, and our backlog increased to $2.6 billion… growth across all verticals, with infrastructure leading, driven by broad-based data center growth in both the gray and white space.”
The numbers explain why management felt confident enough to lift the bar twice. Q1 revenue rose 54% year-over-year to $1.24 billion, a 12% beat. Systems Protection sales jumped 76% reported and 50% organic. Full-year guidance was raised to reported sales growth of 26-28% and adjusted EPS of $4.45 to $4.55, up from a prior range of $4.00 to $4.15.
nVent does the picks and shovels. The next name signs the picks-and-shovels supply contracts directly with the hyperscalers themselves, and the dollar figure on its newest deal will make you sit up.
5. Modine Manufacturing: The $4 Billion Hyperscale Punchline I have been studying the data center thermal stack for the better part of two years, and Modine Manufacturing (NYSE:MOD) is the cleanest expression of the trade I have found. CEO Neil Brinker spelled it out: “landmark $4 billion long-term agreement for chiller sales with a major hyperscale customer, cementing Modine’s position as a critical partner for data center cooling.” That contract runs 2027 through 2029. On top of it, the company is spinning off Performance Technologies via a Reverse Morris Trust with Gentherm, leaving Modine a pure-play climate and data center thermal business by year-end 2026.
The Q4 FY2026 results already show the inflection. Data Center sales rose 158% year-over-year and crossed $400 million in quarterly revenue. Management raised the multi-year data center growth outlook to 50-70% annually, ahead of the prior $2 billion FY28 revenue target. FY2027 guidance now calls for net sales growth of 20-35% and adjusted EBITDA of $650 million to $680 million.
The setup is constructive on the chart. Shares are up 105% year to date but down 2% over the past month, holding above the 50-day moving average. Eight analysts cover the name with seven Buy ratings and one Strong Buy, and a $340.86 average price target against a current price near $274.
The Setup AI workloads are forcing a generational rebuild of data center cooling and power, and these five companies are the contractors, equipment makers, and pure-plays writing the checks back to themselves in the form of backlog. Comfort Systems gave you the IBD-grade chart pause. Modine handed you a $4 billion hyperscale contract on a platter. Both setups exist right now. Whether they persist at these prices is the question worth tracking.
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This means that ENS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ENS currently has a forward P/E ratio of 17.87, while ETN has a forward P/E of 28.49. We also note that ENS has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETN currently has a PEG ratio of 2.44.
Another notable valuation metric for ENS is its P/B ratio of 4.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 7.46.
These metrics, and several others, help ENS earn a Value grade of B, while ETN has been given a Value grade of D.
ENS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ENS is likely the superior value option right now.
ETN trades above its 200-day SMA as backlog jumps and AI data-center demand boosts growth, yet a premium valuation may warrant waiting for a better entry.
The biggest growth stories in the market right now aren't happening with the chip makers. They're happening one layer beneath them.
Keith Kaplan, CEO of TradeSmith, has spent recent months mapping what he calls the "choke points" of the AI build-out—the physical bottlenecks where trillion-dollar demand is running into a world that can't supply fast enough. His argument: the largest fortunes of this AI cycle won't go to the visible players. They'll go to the companies that those players can't function without.
Get Micron Technology alerts:
The $700 Billion ProblemBy the end of 2025, the four largest U.S. hyperscalers—Microsoft NASDAQ: MSFT, Alphabet NASDAQ: GOOGL, Amazon NASDAQ: AMZN, and Meta Platforms NASDAQ: META—are expected to spend more than $700 billion on AI infrastructure. That number climbs toward $1 trillion by 2027 and, according to projections shared by NVIDIA NASDAQ: NVDA during its most recent earnings call, could reach $3 to $4 trillion in total economic impact within three to five years.
That money isn't going into software. It's going into football-field-sized buildings, gigawatt-scale power systems, and transmission lines that don't exist yet. Think of it as demand being squeezed through a very narrow pipe: no matter how much water is upstream, the flow is whatever the choke point allows.
Kaplan identifies five of those choke points, and a stock for each.
Memory: The Chip Inside the ChipHigh-bandwidth memory (HBM) is what allows a GPU to actually function.
Micron Technology Today
MU
Micron Technology
$993.67 -2.20 (-0.22%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,089.29Dividend Yield0.06%
P/E Ratio46.85
Price Target$737.63
Without it, AI chips don't work. Micron Technology NASDAQ: MU is the only American producer of HBM, and its output for 2025 was completely sold out before the year began. Capacity for 2026 is already largely committed.
As NVIDIA transitions its Rubin chips from HBM3E to HBM4, Micron's position in the supply chain only strengthens. Annual revenue is tracking toward $58 billion, and net income is already at $24 billion. Kaplan sees this as a three-to-five-year hold, with the next earnings report on June 24 as an early signal of where demand is heading.
Photonics: The Speed of Light Between ChipsCoherent Today
$382.67 +19.09 (+5.25%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$76.88▼
$440.00P/E Ratio182.93
Price Target$379.64
When data leaves one chip, it has to communicate with thousands of others, and copper wire can't keep up. The solution is silicon photonics: light passed through fiber at speeds copper simply can't match.
Coherent Corp. NYSE: COHR is the leading supplier of the optical transceivers that make this happen, converting electrical signals into pulses of light and back again at every connection in an AI cluster. NVIDIA took a $2 billion stake in Coherent earlier this year—a signal, Kaplan argues, of just how central the company is to the next phase of AI build-out.
Thermal Management: Keeping It From MeltingTop-end AI chips now draw up to 1,200 watts each.
Vertiv Today
$300.36 +2.48 (+0.83%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$110.06▼
$379.93Dividend Yield0.08%
P/E Ratio75.26
Price Target$326.39
Put 72 of them in a rack, and you've got the heat output of a small apartment in a space about the size of a refrigerator. Air cooling can't handle it. Direct-to-chip liquid cooling can carry heat 3,500 times more efficiently than air at the same flow rate.
Vertiv Holdings NYSE: VRT already supplies most of the large hyperscaler build-outs with its cooling distribution units. With a market cap above $100 billion and annual revenue over $10 billion, it's not a speculative name—and a recent pullback of more than 10% over the week before Memorial Day is what Kaplan would view as an attractive entry point ahead of its July 29 earnings.
Power Generation: Nuclear Is Back OnlineConstellation Energy Today
CEG
Constellation Energy
$250.85 +4.14 (+1.68%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$240.51▼
$412.70Dividend Yield0.68%
P/E Ratio21.81
Price Target$377.40
A single AI data center now consumes the power of a mid-sized city. Meta's Hyperion facility is currently operating at 2 gigawatts and is expected to scale to 5. Meeting that kind of baseload demand 24 hours a day, seven days a week means natural gas and nuclear. Both are booming.
Constellation Energy NASDAQ: CEG is the largest nuclear operator in the U.S., with 21 reactors and a 20-year deal signed with Microsoft in September 2024 to bring Three Mile Island back online. Constellation is investing $1.6 billion to revive the plant and deliver 835 megawatts of dedicated capacity.
The shift in who's buying nuclear power tells the story: a decade ago, the biggest buyers were utilities. Today, they're software companies. Amazon's 17-year, $18 billion power purchase agreement with Talen Energy NASDAQ: TLN underscores just how aggressively Big Tech is moving to lock up baseload supply.
The stock is flat over the past three months, a consolidation Kaplan views as a setup ahead of early August earnings, not a sign the thesis has broken.
The Grid: The Last Mile That Takes the LongestEaton Today
$393.65 +0.01 (+0.00%)
As of 10:27 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$311.92▼
$435.43Dividend Yield1.12%
P/E Ratio38.47
Price Target$420.95
Even after the power plant is built, getting electricity to the data center can take years. Transformer lead times have stretched from 12 months to two and a half years. Heavy gas turbines are running up to seven years out. In some northern Virginia utility territories, grid hookups for projects filed after 2024 won't be available until at least 2028.
Eaton Corporation NYSE: ETN has been solving exactly this problem for more than 100 years. Transformers, switchgear, power distribution—the infrastructure that connects every data center to the actual grid.
Data centers are now Eaton's fastest-growing end market, and the company is sitting on multi-year backlogs with a $148 billion market cap and nearly $30 billion in annual revenue. The stock has been largely flat for the past three months, which Kaplan reads as quiet accumulation. Next earnings: August 4.
A 5-Year Mega Trend Still in Its Early InningsMemory spend as a share of hyperscaler budgets has shifted from 8% to 30% in just two years. U.S. data centers could account for 17% of all national electricity consumption by 2030, up from 4% today. These aren't projections being whispered—they're numbers already reshaping capital allocation across the economy.
The question most investors are asking is whether they've missed it. Kaplan's view: not even close. The stocks may be up, but the infrastructure hasn't been built yet. That gap is exactly where the opportunity lives.
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Eaton (ETN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this power management company have returned -1.1%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Manufacturing - Electronics industry, which Eaton falls in, has lost 1.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Eaton is expected to post earnings of $3.07 per share for the current quarter, representing a year-over-year change of +4.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.2%.
For the current fiscal year, the consensus earnings estimate of $13.32 points to a change of +10.4% from the prior year. Over the last 30 days, this estimate has changed +0.2%.
For the next fiscal year, the consensus earnings estimate of $15.61 indicates a change of +17.2% from what Eaton is expected to report a year ago. Over the past month, the estimate has changed +2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Eaton is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Eaton, the consensus sales estimate for the current quarter of $8 billion indicates a year-over-year change of +13.9%. For the current and next fiscal years, $31.64 billion and $34.89 billion estimates indicate +15.3% and +10.3% changes, respectively.
Last Reported Results and Surprise HistoryEaton reported revenues of $7.45 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $2.81 for the same period compares with $2.72 a year ago.
Compared to the Zacks Consensus Estimate of $7.09 billion, the reported revenues represent a surprise of +5.16%. The EPS surprise was +2.55%.
Over the last four quarters, Eaton surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Eaton is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Eaton. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
BOSTON--(BUSINESS WIRE)--The Eaton Vance closed-end funds listed below released today the estimated sources of their May distributions (each a “Fund”). This press release is issued as required by the Funds' managed distribution plan (Plan) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make monthly, as noted below, cash distributions to common shareholders, stated in terms of a fixed amount p.
BOSTON--(BUSINESS WIRE)--The following Eaton Vance closed-end funds (the “Funds”) announced distributions today as detailed below. Declaration – 6/1/2026 Ex-Date – 6/12/2026 Record – 6/12/2026 Payable – 6/24/2026 Municipal Bond Funds: Fund Ticker Distribution Change From Prior Distribution Closing Market Price – 05/29/26 Distribution Rate at Market Price Eaton Vance California Municipal Income Trust CEV $0.0500 - $10.34 5.80% Eaton Vance Municipal Income Trust EVN $0.0513 - $10.75 5.73% T.
