Eaton (ETN - Free Report) ended the recent trading session at $415.22, demonstrating a -1.64% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
Prior to today's trading, shares of the power management company had lost 8.09% lagged the Industrial Products sector's loss of 4.15% and the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Eaton in its upcoming earnings disclosure. In that report, analysts expect Eaton to post earnings of $3.53 per share. This would mark year-over-year growth of 14.98%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.4 billion, indicating a 20.19% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.54 per share and a revenue of $32.61 billion, representing changes of +12.18% and +18.82%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Eaton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Eaton currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Eaton is at present trading with a Forward P/E ratio of 31.17. Its industry sports an average Forward P/E of 24.42, so one might conclude that Eaton is trading at a premium comparatively.
We can additionally observe that ETN currently boasts a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.72 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
As infrastructure demand surges globally, choosing between Eaton (ETN +2.75%) and Vertiv (VRT +3.67%) requires weighing established industrial heritage against the explosive growth seen in data center dominance.
Eaton operates as a diversified giant in the power management space, serving industries from aviation to housing. Vertiv focuses intensely on cooling and power systems specifically for the digital world. Both benefit from the massive electrification trend, making them natural rivals for a spot in your long-term holdings.
The case for EatonEaton focuses on intelligent power management, providing technologies for electrical, aerospace, and vehicle markets. In its latest annual report, filed for 2025, the company highlighted its reach across more than 160 countries. Significant 2025 revenue concentrations include 18% of eMobility sales to one large vehicle OEM, and such customer concentration adds a layer of risk to the business.
Eaton is currently expanding its reach among industrial stocks through its recent acquisition of a majority interest in Dana. In 2025, revenue reached $27 billion, representing growth of about 10% over the prior year. This helped the company generate net income of roughly $4 billion, with a net margin close to 15%.
As of its December 2025 balance sheet, the debt-to-equity ratio was about 0.5x. This ratio measures total debt relative to shareholders' equity, with lower ratios usually indicating a more conservative financial structure. The current ratio, which compares short-term assets to short-term debts, was approximately 1.3x.
The company also generated free cash flow of nearly $3.9 billion on a trailing 12-month basis through the second quarter of 2026.
The case for VertivVertiv is a global leader in critical digital infrastructure, supplying end-to-end power and cooling technologies to major cloud providers. Its customers include the top hyperscale giants. The company maintains a strong backlog of $15.0 billion, which represents orders received but not yet delivered to customers.
In 2025, revenue reached $10.2 billion, a significant jump of roughly 27.7% compared to the previous fiscal year. This growth resulted in a net income of approximately $1.3 billion. The net margin expanded significantly to about 13%, which is nearly double the level reported in 2023.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.8x. The current ratio, which measures the ability to pay short-term debts with current assets, was approximately 1.5x.
Vertiv produced free cash flow of $2.9 billion on a trailing basis through Q2 2026.
Risk profile comparisonEaton is undergoing a major corporate reorganization, specifically the planned spin-off of its Mobility business by early 2027. This process poses risks of failing to realize expected synergies, while global operations remain susceptible to geopolitical instability.
Additionally, reliance on single-source suppliers and potential data breaches stemming from AI integration could increase costs or result in regulatory fines.
Vertiv relies heavily on hyperscale providers, who possess significant purchasing leverage to mandate favorable pricing terms. Future growth is also closely tied to sustained capital expenditure on AI infrastructure, meaning a shift in customer priorities could lead to a sudden decline in demand.
Finally, the company aggressively pursues acquisitions, which carry risks related to integration execution and volatility in raw material prices.
Valuation comparisonEaton appears more conservatively valued, while Vertiv carries a premium based on its Forward P/E and P/S ratio, comparing price to future earnings estimates and revenue.
MetricEatonVertivForward P/E31.0x39.0xP/S ratio5.9x9.9xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
For investors who expect AI infrastructure spending to continue growing over the long term, Vertiv is the stock I would buy right now. While Eaton has advantages in scale and consistent profitability, Vertiv is growing much faster and earning higher margins, indicating an even stronger competitive position in its market.
Data centers are increasingly deploying denser, larger chip clusters. But this creates a problem with generating more heat. Vertiv supplies thermal management and liquid cooling systems to solve this problem.
The increasing complexity of designing AI data centers should also drive higher margins for Vertiv. Vertiv's profit margin reached 13% in 2025 and, as of Q2 2026, has improved to 15% on a trailing 12-month basis.
Both stocks trade at premium multiples of earnings, but analysts expect Eaton to grow earnings just 10% per year, while Vertiv could see 35% annualized growth. Vertiv stock looks like the better bet to outperform the market as AI infrastructure spending continues to grow.
Wall Street returns from summer vacation to a market suddenly bracing for a rate hike, with fresh analyst calls on Intel, Lockheed Martin, Amgen, and SpaceX adding more pressure points to an already tense week.
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Pre-Market Stock Futures: Futures are mixed as Wall Street returns from summer vacations to a thicker slate of economic and geopolitical risks. The odds of a rate hike next week are now rising fast. Last Friday, the August nonfarm payrolls crushed expectations, rising 162,000 versus a 55,000 consensus. Selling kicked in immediately, as the market narrative flipped. The print looks counterintuitive at first, but it underscores an economy that is still running hot. That strength likely gives the Federal Reserve the cover it needs to raise the funds rate by 25 basis points at next week’s meeting.
When the final bell rang last Friday, three of the four major indices closed down, with only the small-cap-heavy Russell 2000 closing higher, up 0.27% at 2,976. The Dow Jones Industrials led the way lower, down 0.51% to 53,414, while the S&P 500 closed at 7,718, down 0.38%. The technology-heavy Nasdaq ended the week at 26,506, down 0.29%. The last data point that could seal a rate hike comes Thursday, when the producer price index is released; Friday, we will get the consumer price index. If both come in higher than expected, that could likely clinch a rate hike.
Treasury Bonds: Yields across the Treasury were modestly higher after the strong employment data, as the only buying across the Treasury complex was on the shortest T-bill maturities. At the close, the 30-year bond was trading at 5.25%, while the benchmark 10-year note was last seen at 4.79%. With vacationing traders returning, we will likely see volatility jump ahead of and after the inflation data later this week.
Oil and Gas: Prices were mixed in the energy sector, as overall crude finished the week up 9% on the back of the renewal of missile attacks by the U.S. and Iran. When the dust settled, Friday Brent Crude was higher by 0.38% at $95.88, while West Texas Intermediate closed lower at $91.21, down 0.10%. Natural gas finished the week strong, closing up 1% at $2.94.
Gold:
After a wild week, the precious metals finished Friday’s session lower on the back of the employment numbers. Gold closed at $4,428, down 0.97%, while Silver was last seen at $66.02, down 1.23%. With the potential for a rate hike, non-yielding assets like precious metals are less attractive.
Crypto: The crypto sector was highly volatile on Friday, with Bitcoin climbing as high as $82,000 before falling back below $80,000 after the stronger-than-expected U.S. jobs report. With more potential market-moving data on the way this week, we could see more volatility, especially after the recent big crypto rally. At 8 AM, Bitcoin is trading at $78,210, while Ethereum was quoted at $2,473.
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations from Tuesday, September 8, 2026.
Upgrades: Eaton Corporation (NYSE: ETN | ETN Price Prediction) was upgraded to Buy from Neutral at Aretem, with a $515 target price. Intel (NASDAQ: INTC) was upgraded to Outperform from Market Perform at Northland, with a $120 target price. Lockheed Martin (NYSE: LMT) was upgraded to Buy from Hold at UBS, with a $674 target price. Sea Limited (NYSE: SE) was raised to Buy from Neutral at Arete with a $152 target price. Synopsys (NASDAQ: SNPS) was upgraded to Overweight from Equal Weight at Morgan Stanley, which has a $500 target price for the shares. Downgrades: Amgen (NASDAQ: AMGN) was downgraded to Market Perform from Outperform at BMO Capital, with a $450 target price for the biotech giant. Baidu (NASDAQ: BIDU) was downgraded to Neutral from Buy at Arete, with a $108 target price. Best Buy (NYSE: BBY) was cut to Neutral from Buy at DA Davidson, which has a $95 target price for the shares. Gulfport Energy (NASDAQ: GPOR) was downgraded to Underweight from Overweight at JPMorgan, which slashed the target price to $194 from $240. Palo Alto Networks (NASDAQ: PANW) was cut to Neutral from Buy at Phillip Securities, with a $346 target price. Initiations: Circle Internet Group (NYSE: CRCL) was initiated with a Market Perform at Keefe, Bruyette & Woods, which has a $105 target price. Corning (NYSE: GLW) was initiated with a Buy rating at China Renaissance, with a $238 target price. Shake Shack (NYSE: SHAK) was started with an Outperform rating at RBC Capital, with an $89 target price. Space Exploration Technologies (NASDAQ: SPCX) was started with a Buy rating at Pivotal, with a $220 target price. TeraWulf (NASDAQ: WULF) was initiated with a Buy rating at Freedom Capital with a $19 target price objective.
Contact [email protected] for any questions or corrections.
Investors interested in Manufacturing - Electronics stocks are likely familiar with Vestas Wind Systems AS (VWDRY - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Vestas Wind Systems AS and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 20.41, while ETN has a forward P/E of 30.34. We also note that VWDRY has a PEG ratio of 0.80. 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 2.60.
Another notable valuation metric for VWDRY is its P/B ratio of 7.28. 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 7.86.
Based on these metrics and many more, VWDRY holds a Value grade of B, while ETN has a Value grade of F.
VWDRY 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 VWDRY is likely the superior value option right now.
Key Takeaways Eaton will invest over $242M in Arkansas to double U.S. Fibrebond capacity and create 1,200 jobs.Electrical Americas organic sales rose 18% in Q2 2026, while orders jumped 41% and backlog grew 33%.The new plant aims to ease capacity constraints, improve delivery reliability and deepen AI infrastructure. Eaton Corporation (ETN - Free Report) plans to invest more than $242 million in a new manufacturing facility in North Little Rock, AR, strengthening its presence in the fast-growing critical-power infrastructure market.
The one-million-square-foot facility will double the U.S. manufacturing capacity of Eaton’s Fibrebond business, which produces customized modular electrical enclosures for data centers, utilities, industrial customers and communications networks. The investment seems time-opportune as customers look for faster and more predictable ways to build complex electrical systems. The project is expected to create more than 1,200 jobs.
The investment also builds on Eaton’s $1.43 billion acquisition of Fibrebond in April 2025, which added pre-integrated power-enclosure capabilities. Fibrebond’s existing facility in Minden, LA, has doubled its production capacity over the past three years. The Arkansas plant will provide another major manufacturing base, helping Eaton ease capacity constraints and improve delivery reliability.
Strong operating momentum supports the expansion. Electrical Americas’ organic sales increased 18% in the second quarter of 2026. Rolling 12-month orders rose 41% and backlog grew 33%. Total sales climbed 21% to a record $8.5 billion, prompting management to raise its 2026 organic growth forecast to 11-13%.
The new facility should deepen Eaton’s exposure to AI infrastructure, grid modernization and electrification. Effective execution could support sustained revenue growth and reinforce its competitive position in high-value electrical solutions.
What About ETN’s Peers?In fiscal first-quarter 2026, Rockwell Automation (ROK - Free Report) announced plans for a new greenfield manufacturing site in Southeastern Wisconsin, and in fiscal second-quarter 2026, Rockwell confirmed New Berlin, WI, as the location. The facility is expected to become Rockwell’s largest manufacturing campus globally and is designed to provide flexibility to scale operations.
Vertiv (VRT - Free Report) is investing in future power architectures, advanced thermal systems, services, and converged infrastructure as AI deployments increase density and infrastructure content per megawatt. Vertiv’s roadmap supports traditional AC, medium-voltage AC, and 800-volt DC architectures, with customer validation and deployments planned through 2028.
ETN Price PerformanceShares of Eaton have gained 27.9% 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 26.18X is higher than its industry’s 22.75X.
Image Source: Zacks Investment Research
Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s third-quarter and fourth quarter 2026 EPS moved north in the past 30 days. The same holds true for 2026 and 2027.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced that its Chief Executive Officer, Paulo Ruiz, will participate in Morgan Stanley's 14th Annual Laguna Conference on September 16, 2026, at 1:50 p.m. Pacific time. Mr. Ruiz will speak to investors in a fireside chat about the company's growth strategy, portfolio transformation and focused execution amid strong demand across data centers, utilities, aerospace and other key markets. A live webcast of the.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 1.46, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.46 approximates between Strong Buy and Buy.
Of the 26 recommendations that derive the current ABR, 19 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 73.1% and 7.7% of all recommendations.
Brokerage Recommendation Trends for ETN
Check price target & stock forecast for Eaton here>>>
While the ABR calls for buying Eaton, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors 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.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
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?Looking at the earnings estimate revisions for Eaton, the Zacks Consensus Estimate for the current year has increased 1.5% over the past month to $13.51.
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. Is Eaton (ETN - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Eaton is a member of the Industrial Products sector. This group includes 186 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Eaton is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ETN's full-year earnings has moved 1.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ETN has returned 28.3% so far this year. In comparison, Industrial Products companies have returned an average of 16.4%. This means that Eaton is performing better than its sector in terms of year-to-date returns.
One other Industrial Products stock that has outperformed the sector so far this year is Nordson (NDSN - Free Report) . The stock is up 38.9% year-to-date.
Over the past three months, Nordson's consensus EPS estimate for the current year has increased 3%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Eaton is a member of the Manufacturing - Electronics industry, which includes 14 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have gained 23.7% this year, meaning that ETN is performing better in terms of year-to-date returns.
In contrast, Nordson falls under the Manufacturing - General Industrial industry. Currently, this industry has 41 stocks and is ranked #75. Since the beginning of the year, the industry has moved +6.4%.
Investors interested in the Industrial Products sector may want to keep a close eye on Eaton and Nordson as they attempt to continue their solid performance.
On August 26, 2026, Bank of Montreal and REX Shares announced the launch of the MicroSectors™ 3× Long MANGOS+ ex Private Companies ETNs (MNGU), due July 31, 2046. Issued by BMO, it began trading today on the NYSE Arca, Inc.
The ETN is expected to offer “sophisticated investors” three times leveraged participation in the daily performance of the NYSE MANGOS+ Index, after fees, charges and the decay effect caused by the daily resetting of the leverage.
The launch also adds to the growing MicroSectors lineup, which currently includes roughly 35 exchange-traded products with more than $9 billion in combined assets.
The equally weighted index tracks the performance of 10 U.S.- listed companies sitting in the top tier of the artificial intelligence sector, in terms of importance. Per the Index guidelines, MANGOS refers to six named anchor companies: Meta Platforms, Inc., Anthropic PBC, NVIDIA Corporation, Alphabet Inc., OpenAI Group PBC and Space Exploration Technologies Corp.
More on MANGOS “A small group of AI companies have delivered an outsized impact on economic growth, technological advancement, and equity market performance over the past decade,” Scott Acheychek, COO of Rex Shares, said in the announcement. “The MNGU ETNs seek to provide investors with focused leveraged exposure to these market leaders while offering the convenience and transparency of the ETN structure.”
BMO Capital Markets Director Saurabh Kushwaha said that AI is “one of the defining themes of this generation.” He added that the index is intended to provide traders with a targeted way to participate in the development of the AI ecosystem.
See More: BMO & REX Debut 3X Leveraged Brazil, Japan & Taiwan ETNs
The 3x leverage also introduces additional risk. The ETN resets its leverage daily. That means that returns over periods longer than one trading day can differ significantly from three times the cumulative return of the underlying index, particularly in volatile markets.
MNGU marks the first exchange-traded product linked to the NYSE MANGOS+ index. Earlier this month, REX Shares and BMO announced six leveraged ETNs focused on Brazilian, Japanese, and Taiwanese equity indexes.
For more news, information, and analysis, visit the Equity ETF Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for BRZL, BRZD, JPND, JPNU, TAWN, and TPEI, for which it receives an index licensing fee. However, BRZL, BRZD, JPND, JPNU, TAWN, and TPEI, are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of BRZL, BRZD, JPND, JPNU, TAWN, and TPEI.
Eaton (ETN - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is 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.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as 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. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating 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 EatonThis power management company is expected to earn $13.51 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Eaton. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.7%.
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 interested in stocks from the Manufacturing - Electronics sector have probably already heard of Vestas Wind Systems AS (VWDRY) and Eaton (ETN). But which of these two stocks offers value investors a better bang for their buck right now?
Key Takeaways HUBB has the edge over ETN on discounted valuation, positive analyst sentiment and solid growth estimates.Hubbell raised 2026 sales-growth guidance to 16-18%, with organic growth projected at 9-11%.Hubbell trades at 21.69X forward earnings, below its five-year median and cheaper than Eaton. Growing investments in automation, artificial intelligence, industrial software, robotics and digital infrastructure are fueling growth for industrial technology companies such as Eaton Corporation (ETN - Free Report) and Hubbell Incorporated (HUBB - Free Report) .
Eaton is a global leader in power management and electrical systems, while Hubbell is a manufacturer of top-notch electrical and utility solutions.
With innovative product portfolios, recurring revenue streams and strong exposure to digital transformation trends, both companies are well-positioned to benefit.
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 capitalize on secular growth trends such as grid modernization, data-center expansion, industrial automation, the energy transition and the aerospace market recovery. Its expanding backlog reflects robust customer demand and the critical role its power-management solutions play across essential infrastructure.
Innovation and sustainability remain integral to Eaton’s long-term strategy. The company intends to invest approximately $3 billion in research and development over the next decade to develop advanced, sustainable technologies, enhance its product portfolio and address customers’ evolving power-management requirements.
Strategic acquisitions are strengthening Eaton’s presence in attractive, high-margin markets. Fibrebond, Resilient Power, Ultra PCS and Boyd expand ETN’s capabilities across electrical infrastructure, aerospace and other priority areas while adding businesses with strong growth prospects and accretive margins.
The rapid buildout of AI-enabled data centers represents a particularly compelling opportunity, as these facilities require substantially greater power capacity, reliability and energy efficiency. Eaton continues to broaden its presence across the electrical power value chain while benefiting from solid demand across data centers, utilities, commercial aerospace and defense. Its diversified exposure to industrial, utility, commercial, residential and aerospace markets also limits dependence on any single end market.
Eaton’s focus on portfolio optimization, productivity and disciplined execution should support further operating-efficiency gains and margin expansion. The planned separation of the Mobility business will allow management to direct more capital toward higher-growth, higher-return opportunities. Meanwhile, the company is investing more than $1 billion in capacity expansion and undertaking roughly two dozen projects within Electrical Americas. As these facilities progressively ramp up, they should strengthen production capacity, improve daily revenue generation and support Eaton’s ability to meet sustained customer demand.
Factors to Consider for HUBBRising electricity demand from AI and data centers, industrial reshoring, electrification and renewable-energy development is increasing the need for grid capacity. Hubbell is well positioned to benefit because it manufactures mission-critical electrical and utility components.
Utility Solutions, which generated 63% of Hubbell’s revenues in 2025, should remain a key growth engine. Its products support distribution, transmission, substations and grid automation, providing broad exposure to electrical infrastructure spending. Improving results and a strong order backlog offer good visibility into future growth. Electrical Solutions provides another growth avenue, particularly across data centers, non-residential construction and light-industrial markets. Capacity expansion and new product introductions should help Hubbell capitalize on sustained investments in AI and high-performance computing infrastructure.
Hubbell’s acquisition strategy complements its objective of strengthening its core portfolio. The $3-billion NSI acquisition added high-growth, high-margin operations and expanded the company’s presence in datacom, broadband and data-center markets. Hubbell expects NSI to contribute approximately $570 million in 2026 sales at adjusted EBITDA margins above 30%. Management also projects sales synergies of 2-3%, cost synergies of 3-5% and adjusted EPS accretion of roughly 20 cents in 2026 and 80 cents in 2027.
NSI’s Bridgeport Fittings brand fills an important product gap in the Electrical Solutions segment, while Polaris complements Hubbell’s Burndy grounding and connector portfolio. These additions increase exposure to attractive electrical niches, while Hubbell’s operating discipline should support further margin expansion.
Reflecting strong business momentum, management raised its 2026 sales-growth forecast to 16-18%, including organic growth of 9-11%.
Adjusted operating margin is projected at 23.1-23.4%, while adjusted EPS of $20.25-$20.55 implies 11-13% growth. Free cash flow is expected to approximate 90% of adjusted net income despite elevated capacity investments.
Price Performance of ETN and HUBBETN shares have gained 31.8% year to date, while HUBB shares have risen 5.7%.
Image Source: Zacks Investment Research
Estimates for ETN and HUBBThe Zacks Consensus Estimate for ETN’s 2026 revenues implies a year-over-year increase of 18.7%, while that for EPS implies a rise of 11.9%. EPS estimates witnessed a 1.1% northbound movement in the past 30 days. The expected long-term earnings growth rate is 11.7%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HUBB’s 2026 revenues implies a year-over-year increase of 17.5%, and that for EPS implies a rise of 12.1%. EPS estimates witnessed a 2.4% northbound movement in the past 30 days. The expected long-term earnings growth rate is 10%.
Image Source: Zacks Investment Research
Are ETN and HUBB Shares Expensive?Eaton is trading at a forward 12-month price-to-earnings of 27.65X, above the median of 26.96X over the last three years. Hubbell is trading at a forward 12-month price-to-earnings of 21.69X, below the median of 22.85X over the last five years.
Eaton shares are more expensive than Hubbell’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.
Hubbell offers an attractive combination of secular growth exposure, high-quality recurring infrastructure demand, pricing power, margin expansion and strong free-cash-flow generation.
While Hubbell carries a Zacks Rank #2 (Buy) at present, Eaton has a Zacks Rank #3 (Hold). Given positive analyst sentiment, discounted valuation and growth estimates, Hubbell has an edge over Eaton.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The S&P 500 is supposed to be the boring part of your portfolio. By buying an S&P 500 fund, the idea is that you gain access to 500 of America’s largest companies, keep costs low, and let compounding do the work. The MAX S&P 500 4X Leveraged ETN (NYSEARCA:SPYU) takes that idea and straps four times leverage to it. If the S&P 500 gains 1% today, SPYU targets roughly 4%. If the index falls 1%, you lose roughly 4%. At face value, that sounds straightforward until the market suffers a real correction. A 10% decline can translate into a loss approaching half your money depending on how the selloff unfolds, yet investors have still built a position worth nearly $600 million in the product.
Four Times the S&P 500, One Day at a Time SPYU is not technically an ETF. It is an exchange-traded note issued by Bank of Montreal that targets four times the daily return of the S&P 500 Total Return Index. The emphasis on daily performance is important. SPYU does not promise four times the S&P 500’s return over a month, a year, or even a week. Rather, the leverage resets at the end of every trading day, making your eventual return dependent on the path the market takes to get there. Bank of Montreal explicitly describes the notes as daily trading tools for sophisticated investors rather than buy-and-hold investments.
The math gets uncomfortable quickly. While it can be fun to think about the potential 4x leveraged upside, downside scenarios are much more sobering.
If the S&P 500 dropped 10% in a single trading session, SPYU would theoretically fall about 40% before fees and other adjustments. In dollar terms, a $10,000 investment becomes roughly $6,000. Spread that correction across multiple volatile sessions, and the result can be even worse. Down days shrink your capital base, rebounds then compound from that smaller balance, and another decline hits the reset exposure again. That volatility drag (sometimes referred to as volatility decay) is why a choppy 10% market correction can push losses toward 50%.
Bank of Montreal’s own prospectus warns that investors can suffer significant losses even when the S&P 500 ultimately finishes a longer holding period higher.
Investors Are Still Showing Up None of that has stopped SPYU from finding an audience.
Bank of Montreal initially sold just $4 million of the notes when SPYU launched in December 2023. By February 2026, $200 million of principal was outstanding after accounting for a two-for-one split. Today, 16 million notes are outstanding with a market capitalization of roughly $595 million based on August 14 figures.
SPYU has also benefited from the same risk-on environment driving money toward leveraged products more broadly. More than 200 leveraged ETFs launched during the first half of 2026 alone as investor appetite for aggressive equity exposure continues to grow (a statistic that should be cause for concern).
This Is a Trading Tool, Not a Better S&P 500 Fund While SPYU has a legitimate use case, it is prudent to approach these kind of products with a bit of skepticism.
A trader with a strong short-term bullish view can obtain enormous S&P 500 exposure without borrowing directly on margin. That said, SPYU should not be confused with a higher-powered replacement for SPDR S&P 500 ETF Trust (NYSEARCA:SPY) or other similar index funds. SPYU adds daily leverage, volatility decay, financing costs, and credit risk. These risks can remain hidden while stocks rise steadily. However, they can become impossible to ignore when the market turns sharply negative.
Contact [email protected] for any questions or corrections.
Key Takeaways Electrical Americas generated $13.3B in sales, up 16%, and contributed 48% of Eaton's total revenues.AI, data centers, reshoring, grid modernization and electrification are driving demand for Eaton.ETN bought Boyd Thermal to boost its data-center thermal-management capabilities and infrastructure position. Eaton Corporation’s (ETN - Free Report) Electrical Americas segment has become the company’s primary growth and earnings engine, supported by secular demand, pricing power, strong margins and substantial backlog visibility.
The segment supplies electrical and industrial components, power-distribution systems and assemblies, residential products, power-quality and connectivity solutions, wiring devices, circuit protection, utility-distribution and reliability equipment, and related services across North and South America.
Electrical Americas generated $13.3 billion in sales, an increase of 16% year over year, while operating profit rose 15% to $4.0 billion. The business contributed approximately 48% of Eaton’s total revenues and 59% of segment operating profit. In the first half of 2026, revenues advanced 18% and represented 47% of companywide sales.
AI and data-center expansion provide a powerful growth catalyst. Increasing computing power density requires greater investment in electrical distribution, switchgear, circuit protection, power management and thermal infrastructure. Eaton also stands to benefit from U.S. reindustrialization, manufacturing reshoring, grid modernization and the broader transition toward electrification.
To capitalize on these trends, Eaton is expanding capacity and pursuing strategic acquisitions. Its acquisition of Boyd Thermal in March 2026 enhances the company’s data-center thermal-management capabilities and strengthens its position in high-growth infrastructure markets.
With diversified exposure to data centers, utilities, industrial facilities and commercial infrastructure—combined with a sizable backlog and robust profitability—Electrical Americas appears well positioned to deliver durable growth.
What About ETN’s Peers?Emerson Electric Co.’s (EMR - Free Report) Intelligent Devices group is supporting growth through demand for automation, process optimization and industrial technologies. Strength in Final Control and Sensors, particularly in the Americas, is helping Emerson capture secular demand for smarter, more efficient industrial operations.
Rockwell Automation’s (ROK - Free Report) Intelligent Devices segment is driving growth, supported by rising demand across industrial automation, data centers, semiconductors and energy. Rockwell continues to benefit from higher volumes, pricing, productivity and favorable mix in this segment. Intelligent Devices’ sustained growth is positioning Rockwell to capitalize on accelerating automation and productivity investments.
ETN Price PerformanceShares of Eaton have gained 37.5% 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 30.11X is higher than its industry’s 25.74X.
Image Source: Zacks Investment Research
Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s third-quarter 2026 EPS did not witness any movement, while that for the fourth quarter has moved 2.3% north in the past 30 days. The Zacks Consensus Estimate for 2026 and 2027 EPS has moved 1% and 1.1% north, respectively, in the past 30 days.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced that Shawn Black has been named president, Aerospace, effective August 17, 2026. In this role, Black will be responsible for leading Eaton's global Aerospace Group. He will report directly to Pete Denk, president and chief operating officer, Industrial Sector, Eaton. Black brings more than 20 years of aerospace and defense industry leadership experience to Eaton, with a background spanning program man.
Key Takeaways Eaton's buyouts target data centers, aerospace and technologies tied to electrification, digitalization & AI.Boyd Thermal's liquid-cooling technology supports an integrated grid-to-chip offering for AI data centers.Acquired businesses contributed 7% to second-quarter 2026 growth. Boyd lifted Electrical Global sales by 25%. Eaton Corporation’s (ETN - Free Report) acquisition strategy is emerging as a key growth engine, strengthening its position in high-growth markets benefiting from electrification, digitalization and artificial intelligence. The company is selectively acquiring differentiated technologies that complement its power-management portfolio and can be cross-sold through its global customer network. Management prioritizes businesses with above-market growth potential, attractive returns and strong strategic alignment.
The AI-driven data-center expansion is the biggest catalyst. Acquisitions including Fibrebond, NordicEPOD, Resilient Power and Boyd Thermal enhance Eaton’s ability to address increasing power density and infrastructure complexity. Boyd Thermal, acquired for $9.55 billion in March 2026, is particularly significant. Its liquid-cooling technology enables Eaton to provide an integrated “grid-to-chip” solution as AI workloads sharply increase data-center power and cooling requirements.
Eaton is also expanding its aerospace capabilities. The $1.53 billion purchase of Ultra PCS in January 2026 added electronic controls, sensing and data-processing technologies, increasing the company’s exposure to mission-critical aerospace systems.
Acquisitions are already making a meaningful financial contribution. Eaton’s 2025 sales rose 10% to $27.4 billion, with acquired businesses contributing two percentage points of growth. Their contribution increased to 4% in the first quarter of 2026 and 7% in the second. Boyd alone added 25% growth to second-quarter Electrical Global sales, helping the segment deliver 44% sales growth and a 41% increase in operating profit.
Overall, these acquisitions expand Eaton’s addressable market, technological capabilities and exposure to powerful secular trends. Successful cross-selling and synergy realization could further strengthen growth, earnings and long-term competitive advantage.
What About ETN’s Peers?Emerson Electric Co. (EMR - Free Report) is using acquisitions to expand its market presence, strengthen customer relationships and enhance its technology portfolio. Through AspenTech, Emerson is accelerating its shift toward software-defined automation, gaining exposure to higher-growth, recurring-revenue markets. The acquisition strengthens Emerson’s digital capabilities while supporting long-term growth and margin expansion.
Powell Industries (POWL - Free Report) is enhancing its automation platform through Remsdaq, adding SCADA technology that complements its electrical hardware. For Powell, the deal enables integrated utility solutions, expands its automation capabilities and supports higher-margin growth. Powell views the acquisition as strategically and financially accretive.
ETN Price PerformanceShares of Eaton have gained 42.4% 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 30.11X is higher than its industry’s 25.74X.
Image Source: Zacks Investment Research
Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s third-quarter 2026 EPS did not witness any movement, while that for the fourth quarter moved 2.3% north in the past 30 days. The Zacks Consensus Estimate for 2026 and 2027 EPS has moved 1% and 1.1% north, respectively, in the past 30 days.
An aerial view of the fire damage caused by the Eaton Fire is shown in Altadena, California, U.S. January 22, 2025. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab
Aug 11 (Reuters) - A California judge tentatively denied a request to hold Southern California Edison, a unit of Edison International (EIX.N), opens new tab, automatically liable for billions of dollars in property losses from the Eaton wildfire, Bloomberg News reported on Tuesday.
Los Angeles County Superior Court Judge Laura Seigle denied the request by insurance companies seeking a ruling that SCE was responsible under a state law that holds utilities automatically liable when their equipment starts a fire, according to the report.
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The tentative ruling came days after Los Angeles County fire investigators said electrical arcing from an out-of-service SCE transmission tower caused the January 2025 Eaton Fire, which killed 19 people and destroyed thousands of homes.
"Yes, we agree with the tentative ruling. Our primary goal is to support the Altadena community as they recover and rebuild," SCE spokesperson David Eisenhauer told Reuters.
SCE faces 998 lawsuits by businesses and individuals over the Eaton fire, as well as by government entities and insurers.
Reporting by Katha Kalia in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Artificial intelligence data centers are hitting a power problem that has little to do with computer chips, according to a new report from Thornburg Investment Management.
Key Takeaways Average AI server rack density has nearly quadrupled since 2021, straining building power systems. Transformer lead times now stretch up to five years amid a broader equipment crunch. TAOZ and TFGZ, two active Thornburg ETFs, hold power infrastructure names like Vertiv and Coherent. Nvidia Corporation’s (NVDA) latest AI hardware draws far more electricity per rack than entire data centers required a decade ago. The transformers, switchgear and cooling systems inside the building have not kept pace, the report found.
At Nvidia’s GTC 2026 conference, chief executive Jensen Huang described AI infrastructure as a five-layer cake. Energy, he said, forms its foundation. “Energy is the first principle of AI infrastructure and the binding constraint on how much intelligence the system can produce,” Huang said.
Thornburg equity research analyst Baadal Chaudhary calls that imbalance “Watts and Wafers.” Chips have scaled at a pace that keeps surprising investors, he wrote. The physical systems that deliver electricity to run them move on timelines measured in years, not quarters.
Transformers take two to five years to procure and switchgear can take up to three years, according to the report. The grid interconnection queue in Northern Virginia, a hub for data center construction, now runs seven years.
See more: Matthew Tuttle on Investing in AI Infrastructure
The broader AI power debate has focused on the electrical grid. This report, however, argues the sharper constraint sits inside the building. Average server rack density across the industry climbed to 27 kilowatts in 2026. That’s up from seven kilowatts in 2021, the report found. AI hardware is overwhelming electrical systems built for a different era.
Electricity Demands Surge Inside the Rack Traditional server racks, the metal frames holding a data center’s servers and networking gear, once drew 5 to 15 kilowatts. Nvidia’s GB200 platform, built for AI computing, runs at 100 to 137 kilowatts, the report found.
The upcoming Vera Rubin platform is projected to reach 200 to 300 kilowatts per rack, according to the report. Rubin Ultra is expected to exceed 600 kilowatts. Air cooling stops working above 40 to 50 kilowatts, pushing operators toward liquid systems that cool the chip directly.
That shift also costs more. AI-optimized data centers spend about $4.6 million per megawatt on cooling, versus $2.4 million at traditional sites, the report found.
Electrical infrastructure costs have climbed too. AI-optimized facilities spend roughly $3.6 million per megawatt on grey space electrical work, covering transformers and switchgear inside the building. Traditional facilities spend about $2.2 million on that same category, according to the report.
How Power Moves Through the Building Electricity does not arrive at a server ready to use. It enters at medium voltage from the grid, steps down through transformers, and passes through switchgear and backup systems. It then travels through distribution units before reaching the rack. Each handoff adds cost, delay, and lost energy.
One fix gaining ground is a shift to 800-volt direct current distribution, which sends power to the rack in fewer steps. The approach cuts copper requirements by more than 40% and lifts efficiency to 92% — 95%, according to the report. That compares with 75% to 85% for conventional systems.
Small shipments are expected to begin in late 2026, though the industry has not settled on a single standard. Nvidia favors native 800V, while hyperscalers including Meta Platforms, Inc. (META) and Alphabet Inc. (GOOGL) favor a different design, the report noted.
Roughly one-third of planned U.S. data center capacity is expected to include on-site power generation, the report found. That includes gas turbines and fuel cells. The equipment helps developers skip utility interconnection queues that can stretch two to four years. But it adds another layer to the building’s electrical stack.
Infrastructure Firms Feel the Strain Equipment backlogs show where the strain is concentrated. Eaton Corp. (ETN) reported data center orders up 240% in the Americas, with total backlog up 31% year over year, according to the report. Eaton, Vertiv Holdings Co. (VRT) and Schneider Electric have each flagged the same trend. Equipment content sold per megawatt is nearing double traditional levels for AI-optimized deployments.
The Thornburg American Opportunities Fund (TAOZ) and the Thornburg Focus Growth Fund (TFGZ), both launched April 1, 2026, are actively managed strategies. Rather than track a fixed index, the funds aim to capture that kind of shift directly.
TFGZ counts Vertiv Holdings Co. and Argan, Inc. (AGX), a power infrastructure contractor, among its top ten holdings, according to the fund’s factsheet. TAOZ holds Coherent Corp. (COHR), an optical components maker, at 4.3% of its portfolio, according to VettaFi.
TAOZ managed $8.75 million in assets and TFGZ managed $7.51 million as of August 10, according to VettaFi.
At least 13 U.S. states have introduced legislation to pause or restrict new data center projects, the report found. Roughly 34 gigawatts of planned capacity is now classified as stranded or delayed. Virginia, home to a dense cluster of data centers, recently passed a per-kilowatt-hour electricity tax aimed specifically at AI facilities.
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Listen to the audio version of this article (generated by AI).
Tom Yeung here with your Sunday Digest.
Imagine that you own a Formula One race car.
It has a 1,000-horsepower engine, a carbon-fiber body, and tires with so much grip that they can almost stick to the ceiling. You hire the world’s best driver and spend millions tuning every part for speed.
Then race day arrives… and there is no fuel.
You may own one of the finest machines ever built, but it’s a very expensive paperweight without fuel.
That is the blind spot hiding inside the Magnificent Seven’s AI boom.
Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG), Meta Platforms Inc. (META), Nvidia Corp. (NVDA), Apple Inc. (AAPL), and Tesla Inc. (TSLA). These are all remarkable companies that have built some of the top F1 vehicles of the AI Revolution.
Data centers… Custom chips… Advanced AI models… And they all suffer from the same blind spot: They don’t produce the “fuel” that allows their multibillion-dollar AI investments to run. Instead, this role is filled by chipmakers… electrical utilities… data center construction firms… and other behind-the-scenes producers making the essential ingredients for the AI Revolution.
InvestorPlace Senior Analyst Eric Fry calls these components “Golden Rivets.” And in his recent free broadcast, he reveals why they are creating a $10 trillion opportunity that is even better than the one offered by the Magnificent Seven.
Today, I’m going to reveal one of these Golden Rivets and three top picks that are churning it out. To find out the rest, you’ll have to watch Eric’s Market Shock presentation here.
One Golden Rivet of the AI Revolution The Golden Rivet I’m going to discuss is everywhere in our modern lives. But you can’t touch or taste it… and you’re not supposed to see or hear it (unless something has gone very, very wrong).
I’m talking about electricity… one of the greatest bottlenecks of the AI Revolution. And over the next several years, we are going to hear a lot about this invisible force.
That’s because electricity is expected to be the No. 1 reason for data center project delays. Analysts currently forecast that around 40% of all planned data centers for 2026 will get pushed into 2027… and the cause will be either the lack of power equipment (transformers, battery systems) or the inability to connect data centers to the main electrical grid. That will push construction planned for 2027 into 2028… and so on.
In other words, the Magnificent Seven companies are building massive power-hungry data centers, but they have nowhere to plug them in.
That’s going to create a bonanza for power utilities and electrical component makers that supply AI data centers. In fact, some power companies have sold out their production through 2030. High-voltage transformers and heavy-duty gas turbines are now even harder to obtain than the highest-end Nvidia chips, simply because there are none available.
Now, here are three electricity Golden Rivet companies that should benefit, from the riskiest to the least risky…
The Moonshot Bet You might recognize my first pick from a Sunday Digest last year when the company still traded in the $8 range:
Fluence Energy (FLNC).
Fluence is a utility-scale energy storage provider. Think of it as storing power in a bottle: Fluence charges massive arrays of batteries when too much electricity is generated, and then dumps it back into the grid when it is needed.
Demand for Fluence’s services has been incredible. Virtually every AI data center needs battery backup systems, because gas turbines cannot spin up fast enough to keep up with sudden demand spikes. Fluence’s batteries give that extra jolt. Ask any child who has ever licked a 9V cell.
The popularity of renewables like solar and wind power has further charged demand for Fluence’s products. After all, AI data centers still need power when the sun doesn’t shine and the wind doesn’t blow. Many energy grids even let data centers jump in line for grid connections if they have on-site batteries. Fluence’s revenues are expected to rise 48% this year, and then another 24% in fiscal 2027 – some of the fastest growth rates in the business.
Keep in mind that the share prices of this promising startup sometimes trade wildly. The stock rose as high as $33.50 in January – a 4X increase from my July 2025 recommendation – before plummeting 50% back into the low-teens range. Fluence will remain unprofitable until 2027, so its stock price will depend on investor mood. Earlier this week, the stock plummeted 26% in after-hours trading before opening back up to almost where it started.
But the same volatility is now giving investors a second chance to buy shares. The stock is now trading under $14, and its flip from negative profits to positive next year should act as the catalyst that buy-and-hold investors need to all pile in all at once.
The Cheapest Entry Point A less volatile way to play the electricity Golden Rivet is Legrand SA (LGRDY), a French company that builds the electrical plumbing inside data centers.
This includes components like:
Busways. Overhead power highways that feed AI servers Breakers. Heavy-duty protection against power surges Power distribution units. Complex power strips for individual servers Monitoring equipment. Measurement equipment to identify potential failures In other words, Legrand moves electricity from a data center’s main power electrical room to each server and manages the things that can go wrong. Data centers now make up more than 32% of sales, up from 15% in 2023.
Legrand is one of the cheapest companies in the business because it primarily trades on the Euronext Paris, where it is valued like a European wiring company. Shares trade at just 22.5X forward earnings. That is far lower than Legrand’s American-traded peers, including Eaton Corp. Plc (ETN) at 30X and Rockwell Automation Inc. (ROK) at 31X. These U.S. firms actually have lower data center revenue shares.
In addition, Legrand has already raised its 2026 guidance twice and has acquired the capabilities it needs for a 2028 industry-wide switch to a new 800-volt standard. That should keep driving sales higher. And as for that whole “European wiring” caricature… roughly half of its sales now go to North America.
That means we should begin to see a convergence between this French company and its American peers. My base case is for a 30% return, and possibly higher if insatiable AI data center demand keeps pushing expected earnings higher from here.
The Quiet Compounder Finally, the power industry’s bluest of blue-chip award goes to Constellation Energy Corp. (CEG), America’s largest producer of nuclear energy. The Baltimore-based firm operates roughly two dozen nuclear reactors, which generate enough power to supply 16 million typical American homes. It also has a large portfolio of wind, solar, natural gas, and hydroelectric plants, which can supply another 11 million homes.
Nuclear energy is a particularly excellent source of electricity for AI data centers. Reactors are very low-cost once they are built and provide the kind of cost stability that tech companies prize. Fuel makes up less than 20% of a nuclear power plant’s cost, compared to 65% to 80% for gas power plants.
Nuclear plants also produce electricity 24/7, giving them an advantage over solar and wind, which require the expensive batteries (often from Fluence) to properly run.
That’s made Constellation’s shares slightly more expensive than its peers, especially those that focus on gas power. CEG trades at 23X forward earnings, compared to a 19.7X sector average. Constellation also holds somewhat high debts because of a 2025 acquisition of another power producer, Calpine Corp.
However, the premium could be worth it for three key reasons:
De-rating. Constellation’s shares have fallen 33% since its October 2025 peak, putting prices back at long-term averages on a P/E basis. Direct deals. Constellation has increasingly fueled its growth with direct contracts with AI data centers, which bypass pricing caps set by regulators. Many of these projects are due to get switched on in the next year. Guidance. Earnings estimates have mostly trended higher, and the company has an excellent history of beating these estimates. Shares rose 6% this week after Constellation announced another earnings beat. Constellation’s stock should not rise as quickly as Fluence or Legrand. Its size and stability make fireworks less likely. Nevertheless, I still expect the stock to grind higher from around $265 to $320 in the next year or so, making it an appropriate bet for risk-averse investors.
The Other Golden Rivets of the AI Revolution In late-2025, Microsoft CEO Satya Nadella revealed that his firm had AI chips sitting on shelves because the company didn’t have enough power to install them.
“You may actually have a bunch of chips sitting in inventory that I can’t plug in,” Nadella said in an online interview. “In fact, that is my problem today.”
This is Microsoft we’re talking about… a $3.7 trillion firm. And they couldn’t find enough electricity to run the chips they had bought.
It turns out Microsoft is not the only Mag 7 company suffering from AI bottlenecks. Nvidia has been forced to delay production of its highest-end chips because its suppliers couldn’t keep up. Apple has been forced to raise prices of iPhones from a “a hundred-year flood” of memory chip shortages. And Elon Musk’s xAI has turned to using dozens of gas turbines without permits to power its “Colossus” supercomputer in Memphis because Tesla’s “Megapack” systems can’t provide enough juice.
Everywhere you look, there are bottlenecks in the AI buildout.
That’s where Eric’s Golden Rivets come in. These are the firms producing these components in such short supply.
In his free Market Shock presentation, he’s revealing his top picks, including 15 free stocks, that he believes will profit from the growing AI shortages.
Click here to check it out.
Until next week,
Thomas Yeung, CFA
Market Analyst, InvestorPlace
Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
BOSTON--(BUSINESS WIRE)--Eaton Vance Senior Floating-Rate Trust (NYSE: EFR) (the “Fund”) held an annual meeting of shareholders earlier today (the “Annual Meeting”). At the Annual Meeting, Fund shareholders were asked to elect three Class II Trustees. The Annual Meeting was adjourned to August 20, 2026 at 11:30 a.m. Eastern Time to allow more time for shareholders to vote. The June 2, 2026 record date for shareholders entitled to vote at the adjourned Annual Meeting remains unchanged. Information about the adjourned Annual Meeting appears below.
If, as of June 2, 2026, you were a Fund shareholder and have not yet voted, the Fund urges you to submit your vote in advance of the adjourned Annual Meeting by one of the methods described in the Fund’s proxy materials. The Fund’s proxy statement is available online at https://funds.eatonvance.com/closed-end-fund-and-term-trust-documents.php.
About the Fund
Shares of closed-end funds often trade at a discount from their net asset value. The market price of the Fund’s 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. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the 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 is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $2 trillion in assets under management or supervision as of June 30, 2026. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at eatonvance.com.
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CLEVELAND--(BUSINESS WIRE)--Intelligent power management company Eaton today announced it was awarded a $7 million, 24‑month contract from the U.S. Air Force Research Laboratory (AFRL) to apply quantum computing, machine learning and advanced visualization to improve resilience and protection at the power grid. The effort will advance new quantum-enabled algorithms and hybrid quantum‑classical methods, developed with partners Infleqtion and Penn State, to help better detect, visualize and respo.
GE Vernova (NYSE:GEV | GEV Price Prediction) and Eaton (NYSE:ETN) just delivered Q2 2026 results that read like two halves of the same AI power thesis. Vernova reported on July 22, Eaton followed on July 31. One sells the electrons. The other moves them from grid to chip.
Gas Turbines Book the Future. Cooling and Switchgear Book the Now. Vernova’s Power segment posted $5.50 billion in revenue with gas equipment orders up 134% organically. Electrification jumped 68% on $2.7 billion of Q2 data center orders alone. CEO Scott Strazik told investors the company will hit “at least 125 GW of gas equipment under contract by year-end 2026”, with production scaling to 30 GW annually by 2030. Backlog now sits at $176 billion. The catch: most of that revenue lands in 2028 and beyond.
Eaton monetized faster. Revenue reached $8.531 billion, up 21.39%, with adjusted EPS of $3.15 beating estimates for a fifth straight quarter. Data centers grew roughly 65% in both Electrical Americas and Electrical Global. The Boyd Thermal liquid-cooling business, acquired for $9.55 billion in March, already booked $432 million in Q2, prompting a full-year revenue guide raise to $1.8 billion.
Backlog Duration Versus Cash Right Now Lens GE Vernova Eaton Core Bet Gas turbines, grid transformers Distribution gear, liquid cooling Backlog Signal $176B total Electrical +43% Cash Story FCF $5.10B, guide to $11.5B-$12.5B FCF $874M, EPS guide $13.40-$13.60 Key Drag Wind losses ~$400M FY26 Interest expense tripled to $201M Vernova is a duration trade. Eaton is a velocity trade. Paulo Sternadt framed the demand backdrop bluntly: “six times what this industry built ever is going to be built in the next years to come.” Meanwhile, Strazik is betting on scope expansion, arguing new products like solid-state transformers could push content per gigawatt to 2 to 3 times today’s $300 million baseline.
The Next Test Is Conversion I will be watching whether Vernova can turn Slot Reservation Agreements into hard orders in the back half, hitting the inflection where backlog exceeds SRAs. For Eaton, I want to see whether Electrical Americas margins push toward the 32% target by 2030 without acquisition dilution creeping back. The Mobility spin with Dana, targeted for Q1 2027, is the cleanup catalyst.
Why I’d Split the Bet by Time Horizon If I need earnings compounding I can measure quarter by quarter, Eaton fits my read. The stock climbed 23.6% in the week around its report and is up 41.24% year to date, which tells me the market is rewarding the near-term realization thesis. For a longer runway tied to structural gas and grid buildout, Vernova’s 56.04% year-to-date gain still looks defensible given the $176 billion visibility. I lean Eaton for a two-year window, Vernova for a five-year one. Wind losses and heavy debt on Eaton’s balance sheet keep me from calling either a layup.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Eaton didn't make the cut. Grab the names FREE today.
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Vestas Wind Systems AS (VWDRY - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Both Vestas Wind Systems AS and Eaton have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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 19.65, while ETN has a forward P/E of 33.13. We also note that VWDRY has a PEG ratio of 0.99. 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 2.84.
Another notable valuation metric for VWDRY is its P/B ratio of 5.9. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ETN has a P/B of 8.51.
These metrics, and several others, help VWDRY earn a Value grade of B, while ETN has been given a Value grade of F.
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.
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 1.48, 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 1.48 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 72% 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.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of 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.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors 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.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
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.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ETN Worth Investing In?In terms of earnings estimate revisions for Eaton, the Zacks Consensus Estimate for the current year has increased 1.5% over the past month to $13.43.
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.
Eaton Corporation, PLC (NYSE:ETN – Get Free Report) shares hit a new 52-week high on Monday following a better than expected earnings announcement. The stock traded as high as $438.76 and last traded at $438.4160, with a volume of 3621802 shares changing hands. The stock had previously closed at $415.20.
The industrial products company reported $3.15 EPS for the quarter, beating the consensus estimate of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion during the quarter, compared to analysts’ expectations of $8.16 billion. During the same quarter in the previous year, the company posted $2.95 EPS. The business’s revenue for the quarter was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS.
Eaton Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be paid a $1.10 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $4.40 annualized dividend and a yield of 1.0%. Eaton’s dividend payout ratio is presently 44.76%.
Eaton News Roundup Here are the key news stories impacting Eaton this week:
Positive Sentiment: Record results exceeded expectations. Eaton reported quarterly sales of approximately $8.5 billion, up 21% year over year, while adjusted earnings per share of $3.15 topped the $3.08 consensus estimate. Segment margins reached 23.1%, above the high end of management’s guidance. Eaton rises after record Q2 results and higher full-year outlook Positive Sentiment: Management raised its 2026 outlook. Full-year adjusted EPS guidance increased to $13.40-$13.60, while organic sales growth guidance rose to 11%-13%. Improved output in Electrical Americas and broad order growth support the upgraded forecast. ETN Q2 Earnings Call Highlights Ramp Progress and Raised Outlook Positive Sentiment: Data-center demand remains a major growth catalyst. Electrical Americas orders rose 41%, Electrical Global orders increased 33%, and electrical-sector data-center orders surged about 85% from the prior-year quarter. RBC said Eaton’s data-center construction backlog positions it well for a sustained growth cycle. Eaton Well-Positioned for Growth Surge Based on Data Center Construction Backlog, RBC Says Positive Sentiment: Analyst sentiment improved. BMO Capital Markets raised its price target from $477 to $487 and maintained an “outperform” rating. Other analysts also boosted forecasts following the earnings beat and higher guidance. Eaton Analysts Boost Their Forecasts After Strong Q2 Earnings Analyst Ratings Changes Several research firms have recently issued reports on ETN. JPMorgan Chase & Co. boosted their target price on Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. BMO Capital Markets increased their price target on shares of Eaton from $477.00 to $487.00 and gave the company an “outperform” rating in a research report on Monday. Sanford C. Bernstein restated an “outperform” rating on shares of Eaton in a report on Monday. KeyCorp upped their target price on shares of Eaton from $420.00 to $480.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company increased their target price on shares of Eaton from $350.00 to $425.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $430.89.
Check Out Our Latest Report on ETN
Insiders Place Their Bets In related news, Director Dorothy C. Thompson sold 167 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director directly owned 1,096 shares of the company’s stock, valued at approximately $421,960. The trade was a 13.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Peter Denk sold 2,000 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $417.94, for a total value of $835,880.00. Following the completion of the sale, the insider owned 7,102 shares in the company, valued at approximately $2,968,209.88. This trade represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,028 shares of company stock worth $8,614,793 in the last three months. 0.10% of the stock is owned by corporate insiders.
Institutional Investors Weigh In On Eaton A number of hedge funds and other institutional investors have recently bought and sold shares of ETN. Bartlett & CO. Wealth Management LLC increased its position in shares of Eaton by 9.2% during the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 238,030 shares of the industrial products company’s stock worth $75,815,000 after purchasing an additional 19,958 shares during the last quarter. Burling Wealth Partners LLC boosted its holdings in shares of Eaton by 63.0% in the 4th quarter. Burling Wealth Partners LLC now owns 11,296 shares of the industrial products company’s stock valued at $3,598,000 after buying an additional 4,366 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Eaton by 239,384.8% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company’s stock valued at $50,344,000 after buying an additional 157,994 shares during the last quarter. Pioneer Trust Bank N A OR grew its stake in shares of Eaton by 669.1% in the fourth quarter. Pioneer Trust Bank N A OR now owns 6,230 shares of the industrial products company’s stock valued at $1,984,000 after buying an additional 5,420 shares in the last quarter. Finally, Entropy Technologies LP acquired a new position in Eaton during the fourth quarter worth $14,786,000. Institutional investors and hedge funds own 82.97% of the company’s stock.
Eaton Stock Performance The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The stock’s fifty day moving average is $405.81 and its two-hundred day moving average is $386.28. The firm has a market capitalization of $170.24 billion, a price-to-earnings ratio of 44.60, a P/E/G ratio of 2.65 and a beta of 1.18.
About Eaton (Get Free Report)
Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.
Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.
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Key Takeaways Eaton raised its 2026 organic growth outlook to 11-13% and adjusted EPS guidance to $13.40-$13.60.Electrical Americas posted 18% organic growth and a 27.5% margin as capacity translated into shipments.Data-center orders rose 85%, while Boyd revenues hit $432 million and its 2026 forecast rose to $1.8 billion. Eaton Corporation plc (ETN - Free Report) used its second-quarter 2026 earnings call to stress that execution, rather than demand, remains the key variable for near-term performance. Management pointed to improving Electrical Americas output, broad order strength and expanding data-center activity as the basis for a higher full-year outlook.
Adjusted EPS of $3.15 exceeded the Zacks Consensus Estimate of $3.08 by 2.30%. Revenues of $8.53 billion topped the $8.00 billion estimate by 6.60%.
ETN Raises the 2026 Growth BarCEO Paulo Sternadt raised Eaton’s 2026 organic growth outlook to 11% to 13%, increasing the midpoint by 200 basis points from the prior range.
Sternadt also lifted adjusted earnings guidance to $13.40 to $13.60 per share, with the midpoint rising 22 cents to $13.50.
For the third quarter, management expects adjusted earnings of $3.46 to $3.56, organic growth of 13.5% to 15.5% and segment margins of 24.6% to 25.0%.
Eaton Converts Capacity Into ShipmentsSternadt said Eaton is investing more than $1 billion across roughly two dozen Electrical Americas capacity projects. Revenue per workday has increased about 25% since the start of 2025.
The business delivered 18% organic growth in the quarter, while its operating margin rose 190 basis points sequentially to 27.5%.
CFO David Foster said the first-to-second-quarter margin improvement reflected about 100 basis points from price-cost and 90 basis points from higher output and scale.
ETN Sees Demand Beyond Data CentersAn RBC Capital Markets analyst asked whether strength extended beyond data centers. Sternadt said commercial and institutional, machine OEM and distributed IT revenues each grew at double-digit rates.
He added that rolling 12-month electrical orders increased in the mid-to-high teens across commercial and institutional, utility, industrial and residential markets. Machine OEM orders rose in the mid-30% range.
Data-center demand remained the largest standout. Electrical-sector data-center orders increased about 85% year over year, while revenues advanced about 65%.
Eaton Puts Boyd at the Center of Its StrategyA Bank of America analyst pressed management on Boyd’s competitive position. Sternadt said the liquid-cooling business generated $432 million of second-quarter revenues, 20% above its commitment.
Management raised Boyd’s full-year revenue forecast to $1.8 billion, with about $1.5 billion expected to be recorded by Eaton during 2026.
Sternadt emphasized Boyd’s relationships with chip providers, scale in cold plates and coolant distribution units, and engineering depth. He also described the acquisition as central to Eaton’s grid-to-chip portfolio.
ETN Details the Margin Recovery PathA Wolfe Research analyst asked for more detail on the Electrical Americas margin ramp. Foster projected a 450-to-500-basis-point improvement from the first half to the second half.
He attributed about 300 basis points to price-cost and 150 to 200 basis points to output and productivity. Pricing actions were implemented during the second quarter and early August.
Foster said lower overtime, more experienced operators and productivity investments should support additional gains. Management expects price-cost to return to roughly neutral in the second half.
Eaton Broadens Its Data-Center PositionA Citigroup analyst asked about data-center content and the transition to 800-volt direct current. Sternadt reaffirmed Eaton’s content estimate of $3.4 million per megawatt.
He said the architecture requires capabilities in solid-state transformers, DC breakers, power electronics, power quality and liquid cooling, supported by a responsive service network.
A Bernstein analyst also asked about modular construction. Sternadt said labor constraints are increasing demand for prefabricated solutions, reinforcing the strategic rationale for the Fibrebond acquisition.
ETN Keeps Execution at the CenterSternadt’s closing message remained focused on Eaton’s lead, invest and execute strategy. He framed stronger capacity conversion, portfolio reshaping and acquisition integration as the company’s central priorities.
Management expressed confidence in the second half and its 2030 commitments, while stressing that the capacity ramp and productivity work remain active execution tasks rather than completed milestones.
Eaton’s Zacks Signals Remain MixedETN currently carries a Zacks Rank #2 (Buy), indicating a favorable near-term earnings-estimate revision profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum and Growth Scores of C, however, are neutral rather than top-tier signals.
The Value Score of F and VGM Score of D weaken the overall style profile because the Zacks methodology favors A or B Style Scores alongside top ranks. The Zacks Rank can change as analysts revise estimates following the reported results.
Eaton reported quarterly earnings of $3.15 per share which beat the analyst consensus estimate of $3.07 per share. The company reported quarterly sales of $8.531 billion which beat the analyst consensus estimate of $8.133 billion.
Eaton raised its FY2026 adjusted EPS guidance from $13.05-$13.50 to $13.40-$13.60.
Eaton shares gained 3.6% to trade at $430.04 on Monday.
These analysts made changes to their price targets on Eaton following earnings announcement.
Evercore ISI Group analyst David Raso upgraded Eaton from In-Line to Outperform and raised the price target from $453 to $502. BMO Capital analyst Daniel DiCicco maintained the stock with an Outperform rating and raised the price target from $477 to $487. Considering buying ETN stock? Here’s what analysts think:
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Farmers National Bank boosted its stake in shares of Eaton Corporation, PLC (NYSE:ETN – Free Report) by 78.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 12,360 shares of the industrial products company’s stock after acquiring an additional 5,433 shares during the quarter. Eaton comprises 1.0% of Farmers National Bank’s investment portfolio, making the stock its 27th biggest holding. Farmers National Bank’s holdings in Eaton were worth $4,421,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also recently modified their holdings of the stock. PFA Pension Forsikringsaktieselskab purchased a new position in Eaton during the 4th quarter worth $97,989,000. Clal Insurance Enterprises Holdings Ltd grew its position in shares of Eaton by 112.6% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company’s stock valued at $120,199,000 after purchasing an additional 178,000 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich grew its holdings in Eaton by 24,986.3% during the 1st quarter. Munich Reinsurance Co Stock Corp in Munich now owns 154,281 shares of the industrial products company’s stock valued at $55,182,000 after buying an additional 153,666 shares during the last quarter. Silvercrest Asset Management Group LLC increased its position in Eaton by 23.1% during the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company’s stock worth $99,012,000 after purchasing an additional 58,281 shares in the last quarter. Finally, Boston Trust Walden Corp grew its holdings in shares of Eaton by 1,560.4% during the first quarter. Boston Trust Walden Corp now owns 58,793 shares of the industrial products company’s stock worth $21,028,000 after buying an additional 55,252 shares in the last quarter. 82.97% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In A number of equities research analysts have recently commented on the company. Citigroup lifted their price objective on Eaton from $464.00 to $471.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Evercore set a $453.00 target price on shares of Eaton in a research note on Monday, May 11th. Weiss Ratings downgraded Eaton from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 18th. Wells Fargo & Company boosted their price objective on shares of Eaton from $350.00 to $425.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Finally, Barclays upped their target price on Eaton from $340.00 to $392.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $423.00.
Get Our Latest Research Report on Eaton
Eaton Trading Up 0.0% Eaton stock opened at $415.24 on Monday. Eaton Corporation, PLC has a 52-week low of $311.92 and a 52-week high of $436.74. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $161.24 billion, a price-to-earnings ratio of 42.24, a PEG ratio of 2.65 and a beta of 1.18. The firm has a 50-day moving average price of $404.88 and a two-hundred day moving average price of $385.53.
Eaton (NYSE:ETN – Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 EPS for the quarter, beating the consensus estimate of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion for the quarter, compared to analyst estimates of $8.16 billion. During the same quarter last year, the business earned $2.95 earnings per share. Eaton’s revenue was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. Sell-side analysts expect that Eaton Corporation, PLC will post 13.44 earnings per share for the current year.
Eaton Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be paid a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 7th. Eaton’s dividend payout ratio (DPR) is presently 43.01%.
Insider Activity In related news, Director Gerald Johnson bought 746 shares of the business’s stock in a transaction dated Friday, May 8th. The shares were bought at an average cost of $402.29 per share, with a total value of $300,108.34. Following the completion of the transaction, the director directly owned 1,414 shares of the company’s stock, valued at approximately $568,838.06. This trade represents a 111.68% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Dorothy C. Thompson sold 167 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director owned 1,096 shares in the company, valued at approximately $421,960. The trade was a 13.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,028 shares of company stock valued at $8,614,793 over the last quarter. Insiders own 0.10% of the company’s stock.
Key Headlines Impacting Eaton Here are the key news stories impacting Eaton this week:
Positive Sentiment: Quarterly results exceeded expectations. Eaton reported adjusted EPS of $3.15, up from $2.95 a year earlier and above the $3.08 consensus. Sales rose 21.4% year over year to approximately $8.5 billion, exceeding estimates near $8.16 billion. GAAP EPS was $2.11 after amortization, acquisition-related and restructuring charges. Eaton Q2 Earnings and Revenues Top Estimates Positive Sentiment: Electrical demand and data-center growth remain powerful catalysts. Management cited strong Electrical Americas performance, accelerating orders and backlog, data-center demand, acquisitions and solid Aerospace results. The company also raised its organic-growth outlook, signaling continued momentum in its core businesses. Eaton’s Q2 Earnings Beat on Strong Electrical Sales, Outlook Raised Positive Sentiment: Full-year guidance was raised above consensus. Eaton forecast FY 2026 adjusted EPS of $13.40-$13.60, compared with consensus of $13.34. Analysts at Zacks Research subsequently increased several 2027 and 2028 EPS estimates, reflecting confidence in longer-term earnings growth. Eaton Reports Record Second Quarter 2026 Results Neutral Sentiment: Near-term expectations are largely priced in. Third-quarter EPS guidance of $3.46-$3.56 centers on $3.51, approximately in line with consensus. Eaton’s valuation is also elevated, with a reported price-to-earnings ratio above 40, while unusually high put-option activity highlights some investor caution. Eaton Q2 2026 Earnings Call Transcript About Eaton (Free Report)
Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.
Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.
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Argent Capital Management LLC raised its position in Eaton Corporation, PLC (NYSE:ETN – Free Report) by 33.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 162,990 shares of the industrial products company’s stock after acquiring an additional 40,985 shares during the quarter. Eaton makes up 1.8% of Argent Capital Management LLC’s investment portfolio, making the stock its 17th largest position. Argent Capital Management LLC’s holdings in Eaton were worth $58,297,000 at the end of the most recent quarter.
A number of other institutional investors also recently modified their holdings of ETN. Hilton Head Capital Partners LLC purchased a new position in Eaton during the 4th quarter valued at about $26,000. Sfam LLC purchased a new stake in Eaton in the 4th quarter worth approximately $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Eaton in the 4th quarter worth approximately $28,000. Eagle Bay Advisors LLC purchased a new position in shares of Eaton during the fourth quarter valued at approximately $29,000. Finally, Boreal Capital Management LLC purchased a new position in shares of Eaton during the first quarter valued at approximately $33,000. 82.97% of the stock is currently owned by hedge funds and other institutional investors.
Insider Transactions at Eaton In related news, insider Antonio Galvao sold 494 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $405.86, for a total value of $200,494.84. Following the sale, the insider owned 9,175 shares in the company, valued at $3,723,765.50. This represents a 5.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Gerald Johnson acquired 215 shares of the stock in a transaction on Monday, May 11th. The shares were bought at an average price of $419.02 per share, with a total value of $90,089.30. Following the purchase, the director directly owned 1,629 shares of the company’s stock, valued at $682,583.58. The trade was a 15.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders sold 21,028 shares of company stock worth $8,614,793. Company insiders own 0.10% of the company’s stock.
Key Eaton News Here are the key news stories impacting Eaton this week:
Positive Sentiment: Quarterly results exceeded expectations. Eaton reported adjusted EPS of $3.15, up from $2.95 a year earlier and above the $3.08 consensus. Sales rose 21.4% year over year to approximately $8.5 billion, exceeding estimates near $8.16 billion. GAAP EPS was $2.11 after amortization, acquisition-related and restructuring charges. Eaton Q2 Earnings and Revenues Top Estimates Positive Sentiment: Electrical demand and data-center growth remain powerful catalysts. Management cited strong Electrical Americas performance, accelerating orders and backlog, data-center demand, acquisitions and solid Aerospace results. The company also raised its organic-growth outlook, signaling continued momentum in its core businesses. Eaton’s Q2 Earnings Beat on Strong Electrical Sales, Outlook Raised Positive Sentiment: Full-year guidance was raised above consensus. Eaton forecast FY 2026 adjusted EPS of $13.40-$13.60, compared with consensus of $13.34. Analysts at Zacks Research subsequently increased several 2027 and 2028 EPS estimates, reflecting confidence in longer-term earnings growth. Eaton Reports Record Second Quarter 2026 Results Neutral Sentiment: Near-term expectations are largely priced in. Third-quarter EPS guidance of $3.46-$3.56 centers on $3.51, approximately in line with consensus. Eaton’s valuation is also elevated, with a reported price-to-earnings ratio above 40, while unusually high put-option activity highlights some investor caution. Eaton Q2 2026 Earnings Call Transcript Wall Street Analyst Weigh In ETN has been the subject of a number of research analyst reports. Evercore set a $453.00 price target on Eaton in a research note on Monday, May 11th. Weiss Ratings downgraded shares of Eaton from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, May 18th. KeyCorp lifted their target price on shares of Eaton from $420.00 to $480.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Royal Bank Of Canada boosted their price target on shares of Eaton from $457.00 to $484.00 and gave the company an “outperform” rating in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. increased their price target on shares of Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Eaton currently has a consensus rating of “Moderate Buy” and an average target price of $423.00.
Read Our Latest Research Report on ETN
Eaton Stock Up 7.3% NYSE:ETN opened at $415.24 on Friday. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.19 and a quick ratio of 0.75. The firm’s 50-day moving average price is $404.88 and its 200-day moving average price is $385.14. The company has a market capitalization of $161.24 billion, a PE ratio of 40.59, a P/E/G ratio of 2.48 and a beta of 1.18. Eaton Corporation, PLC has a 1-year low of $311.92 and a 1-year high of $436.74.
Eaton (NYSE:ETN – Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.08 by $0.07. The company had revenue of $8.53 billion during the quarter, compared to analysts’ expectations of $8.16 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. Eaton’s revenue was up 21.4% on a year-over-year basis. During the same period last year, the company posted $2.95 EPS. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. On average, equities analysts predict that Eaton Corporation, PLC will post 13.35 EPS for the current fiscal year.
Eaton Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 7th will be given a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, August 7th. Eaton’s payout ratio is currently 43.01%.
Eaton Company Profile (Free Report)
Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.
Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.
Featured Stories Five stocks we like better than Eaton Chevron’s Strong Quarter Shows Why It Still Leads the Energy Sector Amazon’s Earnings Beat Shows Why AWS Is Back at the Center of the Bull Case Apple’s Record Quarter Could Not Outrun Its Guidance Problem McKesson’s Compounding Keeps Adding Up Want to see what other hedge funds are holding ETN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Eaton Corporation, PLC (NYSE:ETN – Free Report).
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AI Data Centers Need Power, and These 2 Industrials Are Cashing InEaton NYSE: ETN reported record second-quarter revenue and adjusted earnings as demand across its electrical businesses and aerospace segment remained strong, led by data center activity and capacity expansion in Electrical Americas.
Chief Executive Officer Paulo Ruiz said adjusted earnings per share reached $3.15, exceeding the company’s guidance midpoint by $0.10. Revenue rose 21% to a record $8.5 billion, including 14% organic growth and a seven-percentage-point contribution from acquisitions. Eaton reported a 23.1% margin for the quarter, with revenue growth and margins both above the high end of its guidance.
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Data Center Delays Create Opportunity in These 3 StocksThe company raised its full-year outlook, citing stronger-than-expected execution, accelerating orders and expanding backlog. Eaton now expects 2026 organic growth of 11% to 13%, up from its prior range of 9% to 11%, and adjusted EPS of $13.40 to $13.60, or $13.50 at the midpoint.
Electrical businesses lead growth Electrical Americas organic sales grew 18% in the quarter, driven in part by approximately 65% growth in data center revenue, according to Chief Financial Officer Dave Foster. The segment also posted strong growth in machine OEM and commercial and institutional markets.
5 Stocks Solving the AI Power CrisisElectrical Americas operating margin was 27.5%, up 190 basis points from the first quarter. Foster said about 100 basis points of the sequential improvement came from price-cost effects, while the remaining 90 basis points reflected higher output as facilities expanded production.
Management said Eaton is investing more than $1 billion in capacity expansion across Electrical Americas and is bringing about two dozen projects online. Revenue per day has risen roughly 25% since the beginning of 2025, including an 8% sequential increase in the second quarter, Ruiz said.
Demand continued to outpace shipments. Electrical Americas recorded a 1.3 book-to-bill ratio, while orders increased 41% on a rolling 12-month basis. Ruiz said backlog in the segment increased by $5 billion since the beginning of 2025, including a sequential increase of $700 million.
For the second half, Foster said the company expects Electrical Americas margins to rise by 450 to 500 basis points compared with the first half. He attributed approximately 300 basis points of that expected increase to price-cost improvement and 150 to 200 basis points to output and productivity gains. Eaton said pricing actions were implemented in the second quarter and early third quarter.
Global electrical and aerospace results Electrical Global revenue rose 44%, including 18% organic growth and a 25-point contribution from the Boyd acquisition. Organic growth was supported by data centers, utilities and machine OEM markets. Segment operating margin was 19.8%, down 30 basis points from the prior year but roughly one percentage point ahead of management’s expectations.
The company said orders in Electrical Global increased 33% on a rolling 12-month basis. Ruiz said each of the segment’s businesses—including Europe, Asia-Pacific and its Guides business—performed above expectations, with revenue up about 20% in Europe and Asia-Pacific and up high teens at Guides.
Eaton raised its full-year Electrical Global organic growth outlook by 450 basis points to a midpoint of 12%. Ruiz said management remained prudent in its outlook despite the segment’s second-quarter outperformance.
In Aerospace, organic sales increased 7%, producing record quarterly sales and a second-quarter record for segment profit. Commercial OEM and commercial aftermarket markets were particular sources of strength. The Ultra PCS acquisition added six points of growth and was accretive to Aerospace margins, Foster said. Aerospace operating margin expanded 60 basis points to 22.8%, while book-to-bill increased to 1.2.
Mobility organic sales declined 2%, though the decline was fully offset by favorable foreign exchange. Excluding Eaton’s intentional exit from a low-margin business, organic growth would have been slightly positive. Segment margins increased 90 basis points from the prior year.
Data center opportunity and acquisitions Ruiz said Eaton continues to see unusually strong data center demand, noting that total U.S. data center backlog had reached 307 gigawatts, equal to roughly 15 years of backlog at 2025 build rates. He said only about 20% of that backlog is expected to convert in the near term, with most translating into deliveries in 2028 and beyond.
Management reiterated that Eaton’s data center content opportunity is approximately $3.4 million per megawatt. Ruiz said the company is positioning itself for a transition toward 800-volt direct-current architectures through its capabilities in medium-voltage solid-state transformers, DC breakers, power electronics, power quality, cooling and service.
The company also highlighted the performance of Boyd, which supplies liquid cooling products including cold plates and coolant distribution units. Eaton raised its full-year Boyd revenue forecast to $1.8 billion, of which $1.5 billion is expected to be included in Eaton’s 2026 results. Boyd generated $432 million in second-quarter revenue, which Ruiz said was 20% above its commitment and Eaton’s guidance for the period.
Ruiz said Eaton’s acquisitions of Fibrebond, Resilient Power, Ultra PCS and Boyd are intended to expand the company’s exposure to higher-growth, higher-margin markets. Fibrebond, in particular, provides capabilities in prefabricated and modular data center infrastructure, an area Ruiz said could benefit as customers seek to reduce reliance on on-site skilled labor.
Cash flow and tariff comment Foster said operating cash flow increased 23% from the prior year to a second-quarter record. Eaton reaffirmed its full-year cash flow expectations.
During the question-and-answer session, Ruiz said the impact from IEEPA-related refunds in the second quarter was less than $3 million, or less than $0.01 per share. He said the impact of tariffs and refunds in the second half was immaterial and already embedded in the company’s guidance.
About Eaton (NYSE:ETN)Eaton NYSE: ETN is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company's offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.
Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Eaton's adjusted EPS rose 6.8% to $3.15, while revenues climbed 21.4% to $8.53 billion.Electrical backlog rose 43%, fueled by strong orders, data-center demand and acquisition gains.ETN raised 2026 organic growth guidance to 11-13% and adjusted EPS to $13.40-$13.60. Eaton Corporation plc (ETN - Free Report) reported second-quarter 2026 adjusted earnings of $3.15 per share, up 6.8% year over year and 2.27% above the Zacks Consensus Estimate of $3.08. Revenues of $8.53 billion increased 21.4% and surpassed the consensus mark of $8.01 billion by 6.57%.
GAAP earnings were $2.11 per share, down 15.9% from $2.51 a year ago. The gap between GAAP and adjusted results reflected 50 cents per share of intangible amortization, 49 cents of acquisition and divestiture charges, and 5 cents tied to restructuring.
ETN's Organic Growth Drives RevenuesSecond-quarter total revenues were $8.53 billion, surpassing the Zacks Consensus Estimate of $8 billion by 6.57%.
Second-quarter sales growth included a 14% increase in organic revenues and a 7% contribution from acquisitions. Management said data centers remained a major growth engine, while demand was also robust across other served markets.
The quarter benefited from double-digit organic growth in both electrical businesses and strong acquisition contributions. Electrical-sector backlog rose 43% year over year, while Aerospace backlog advanced 28%, underscoring sustained demand across key end markets.
Eaton's Segment DetailsElectrical Americas sales reached $3.95 billion, up 18% organically. Operating profit rose 10% to $1.09 billion, while margin was 27.5%, improving 190 basis points sequentially.
Orders in the segment increased 41% on a rolling 12-month basis, and backlog grew 33% from June 2025. These metrics highlight continued strength in Eaton's largest business and provide visibility into future activity.
Electrical Global sales climbed 44% to $2.52 billion. Organic growth was 18%, Boyd Thermal added 25%, and foreign exchange contributed 1%. Operating profit increased 41% to $499 million, with margin improving 60 basis points sequentially to 19.8%.
The segment's backlog surged 103%, while rolling 12-month orders rose 33% organically. The combined Electrical businesses maintained a book-to-bill ratio of 1.2, meaning orders continued to exceed completed sales.
Aerospace sales rose 13% to $1.22 billion, supported by 7% organic growth and a 6% acquisition contribution. Operating profit advanced 16% to $278 million, while margin expanded 60 basis points year over year to 22.8%. Rolling 12-month orders increased 17%.
Mobility sales were $841 million. A 2% organic decline was offset by a 2% benefit from currency translation, leaving reported sales roughly flat year over year.
Operating profit increased 7% to $109 million, and margin expanded 90 basis points to 13.0%. Eaton also agreed to separate Mobility through a Reverse Morris Trust transaction with Dana, which is expected to close in the first quarter of 2027.
ETN's Margins Face Acquisition-Related PressureTotal segment margin was 23.1%, 10 basis points above the high end of management's guidance but 80 basis points below the prior-year quarter. Acquisition-related effects and higher amortization weighed on reported profitability.
Selling and administrative expense was $1.24 billion, research and development expense was $227 million, and net interest expense was $201 million. The company also recorded $24 million of restructuring charges during the quarter.
Eaton's Cash Flow Supports Ongoing InvestmentOperating cash flow was $1.13 billion, up 23% year over year. After $253 million of capital expenditures, free cash flow totaled $874 million, an increase of 22%.
At June 30, 2026, cash was $483 million compared with $622 million at year-end 2025. Long-term debt was $18.51 billion, up from $8.76 billion, reflecting the funding impact of recent acquisitions.
ETN Raises Full-Year Organic Growth GuidanceFor 2026, Eaton now expects organic growth of 11-13% (up from prior range of 9-11%), segment margin of 24.1-24.5% and adjusted earnings of $13.40-$13.60 per share (up from prior range of $13.05-$13.50). The midpoint of the earnings range implies 12% growth from 2025.
For the third quarter, management projects organic growth of 13.5-15.5%, segment margin of 24.6-25% and adjusted earnings of $3.46-$3.56 per share. The outlook reflects expectations for continued demand momentum and stronger profitability.
ETN’s Zacks RankEaton has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other ReleasesA. O. Smith Corporation’s (AOS - Free Report) second-quarter 2026 adjusted earnings of $1.03 per share beat the Zacks Consensus Estimate of 96 cents by 7.29%.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $3.74 for 2026 earnings per share has declined 2.86% year over year.
ABB Ltd. (ABBNY - Free Report) reported quarterly earnings of 66 cents per share, lagging the Zacks Consensus Estimate of 79 cents by 16.46%.
The long-term earnings growth rate is pinned at 17.67%. The Zacks Consensus Estimate for 2026 earnings per share has increased 51.81% year over year.
AZZ (AZZ - Free Report) reported quarterly earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.63 by 13.5%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 12.12% year over year.
For the quarter ended June 2026, Eaton (ETN - Free Report) reported revenue of $8.53 billion, up 21.4% over the same period last year. EPS came in at $3.15, compared to $2.95 in the year-ago quarter.
The reported revenue represents a surprise of +6.57% over the Zacks Consensus Estimate of $8 billion. With the consensus EPS estimate being $3.08, the EPS surprise was +2.27%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Eaton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Mobility: $841 million versus $857.29 million estimated by three analysts on average.Net Sales- Electrical Global: $2.52 billion versus $2.11 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +43.6% change.Net Sales- Electrical Americas: $3.95 billion versus $3.79 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.9% change.Net Sales- Aerospace: $1.22 billion versus the three-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of +13.2%.Segment operating profit (loss)- Aerospace: $278 million compared to the $267.63 million average estimate based on three analysts.Segment operating profit (loss)- Mobility: $109 million versus $116.25 million estimated by three analysts on average.Segment operating profit (loss)- Electrical Global: $499 million versus the three-analyst average estimate of $405.69 million.Segment operating profit (loss)- Electrical Americas: $1.09 billion versus $1.03 billion estimated by three analysts on average.View all Key Company Metrics for Eaton here>>>
Shares of Eaton have returned -2.9% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that second quarter 2026 earnings per share were $2.11. Excluding charges of $0.50 per share related to intangible amortization, $0.49 per share related to acquisitions and divestitures, and $0.05 per share related to a multi-year restructuring program, adjusted earnings per share were $3.15, a second quarter record. Sales in the quarter were $8.5 billion, a record and up 21% from the.
Eaton Corp PLC (ETN) released its 8-K filing on July 31, 2026, reporting impressive second-quarter net sales of $8.5 billion, marking a remarkable 21% increase
Eaton (ETN - Free Report) came out with quarterly earnings of $3.15 per share, beating the Zacks Consensus Estimate of $3.08 per share. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.27%. A quarter ago, it was expected that this power management company 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 surpassed consensus EPS estimates three times.
Eaton, which belongs to the Zacks Manufacturing - Electronics industry, posted revenues of $8.53 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.57%. This compares to year-ago revenues of $7.03 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Eaton shares have added about 21.5% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Eaton?While Eaton has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Eaton was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.52 on $8.22 billion in revenues for the coming quarter and $13.35 on $31.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Electronics is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Emerson Electric (EMR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This maker of process controls systems, valves and analytical instruments is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +10.5%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
Emerson Electric's revenues are expected to be $4.79 billion, up 5.3% from the year-ago quarter.
Eaton: Steady Sequential Revenue GainsEaton (ETN +6.91%) earns the vast majority of its revenue by providing energy-efficient solutions and components for electrical, hydraulic, and mechanical power management systems.
It announced a definitive agreement to separate its mobility group and combine it with Dana Incorporated, and it recorded an approximately 12% net income margin for the quarter ended March 31, 2026.
Tesla: Navigating Large Revenue SwingsTesla (TSLA +3.53%) primarily generates its revenue by manufacturing and distributing electric vehicles, alongside offering comprehensive solar energy generation and battery storage solutions to global customers.
Tesla has a residential energy partnership with Sunrun to coordinate home battery resources and support grid reliability. It reported an approximately 4% net income margin for the quarter ended June 30, 2026.
Why Revenue Matters for Retail InvestorsRevenue here refers to the data provider's standardized income-statement revenue line item, and tracking this foundational metric helps everyday investors understand the total volume of money a business brings in before any operating expenses or taxes are deducted.
Quarterly Revenue for Eaton and TeslaQuarter (Period End)Eaton RevenueTesla RevenueQ3 2024$6.3 billion$25.2 billionQ4 2024$6.2 billion$25.7 billionQ1 2025$6.4 billion$19.3 billionQ2 2025$7.0 billion$22.5 billionQ3 2025$7.0 billion$28.1 billionQ4 2025$7.1 billion$24.9 billionQ1 2026$7.5 billion$22.4 billionQ2 2026Not yet reported$28.2 billionData source: Company filings. Data as of July 24, 2026.
Foolish TakeThe headline story in this revenue matchup is Eaton’s steady and reliable revenue generation versus Tesla’s much larger, but much more variable, revenue numbers. And it’s a classic story for investors: Do you invest in the consistent but boring power management company, or the flashy but volatile Elon Musk-led electric vehicle and AI superstar?
Eaton earns money by selling designing, manufacturing, and selling electrical and industrial power management products like transformers, circuit breakers, fuel pumps, and cooling solutions. It has customers in the power distribution, data center, and aerospace market segments, which allows for consistent and predictable revenue generation. Revenue has been gaining steadily as these end markets demand more energy and energy solutions. Eaton also pays a modest dividend.
Tesla is a more well-known name, given its enigmatic and charismatic CEO, recognizable consumer products, and ambitious plans. And while its revenue numbers consistently dwarf Eaton’s, they’re unpredictable, with a nearly $9 billion range just in the reported period above.
Revenue isn’t the only thing to consider before investing in a stock. Investors will also want to look at how the companies manage their expenses (Eaton’s net margin is significantly higher than Tesla’s), as well as how their respective stocks are valued. Eaton is scheduled to give investors its quarterly report tomorrow, so there will be new numbers to digest then.
Key Takeaways Broadcom is backed by AI chip, networking and VMware software demand heading into the rest of 2026. ETN benefits from AI-driven investment in power management, electrification and data center infrastructure. July's pullback resets growth sector valuations without changing long-term demand drivers for these picks. The month of July was turbulent for investors, thanks to growing concerns over whether hyperscalers can sustain record AI infrastructure spending while delivering attractive returns, renewed trade uncertainty and persistent geopolitical risks. Market sentiment deteriorated after Alphabet (GOOGL - Free Report) raised its 2026 capital expenditure guidance to $195-$205 billion from $180-$190 billion, prompting investors to question whether massive AI investments can continue generating attractive returns. The announcement triggered broad profit-taking across AI infrastructure and semiconductor stocks despite another quarter of robust cloud growth and healthy corporate earnings.
Macro Backdrop Supports Growth SectorsAs August approaches, while AI-related names are under pressure, the broader macro backdrop remains constructive. The Federal Reserve left the federal funds rate unchanged at 3.50%-3.75% in July, noting that inflation remains above its long-run target even as economic activity and labor market conditions continue to show resilience. Business investment has also remained healthy, supported by sustained spending on computing equipment, software and AI infrastructure, although higher borrowing costs continue to weigh on interest-rate-sensitive areas of the economy.
Why August Is the Right Time to Reposition PortfoliosWith the market entering the second half of 2026, August presents an important opportunity for investors to reassess portfolio positioning. July's pullback has reset valuations across several growth areas without materially changing their long-term fundamentals. As the earnings season progresses and investors look beyond near-term volatility, sectors supported by stable earnings growth, structural demand drivers and continued capital investment are likely to lead the market through the remainder of the year. Identifying these growth sectors, and the companies best positioned to benefit from them, could be key to generating attractive returns in the months ahead.
2 Growth Sectors to Buy for the Rest of 2026We have identified two growth sectors, Technology and Industrial Products, and two constituent stocks, Broadcom (AVGO - Free Report) and Eaton (ETN - Free Report) , which are best positioned to capitalize on them.
Technology: BroadcomTechnology stands out as the first sector to watch. July's weakness reflected concerns over AI capital spending and valuations rather than deteriorating demand. Enterprise adoption of generative AI continues to accelerate, with cloud providers, semiconductor companies, networking vendors and software firms benefiting from expanding AI workloads. Continued investment in AI infrastructure by hyperscalers, despite near-term investor scrutiny, reinforces the sector's long-term growth outlook.
Among individual stocks, Broadcom is an attractive play, benefiting from strong demand for custom AI accelerators, high-speed networking chips and VMware-driven software revenues, providing multiple growth drivers through the remainder of 2026. Although this Zacks Rank #2 (Buy) stock has slipped roughly 2% month to date amid the broader AI infrastructure-led selloff, its growth outlook remains exceptionally strong. The Zacks Consensus Estimate calls for fiscal 2026 earnings growth of 72.1% on 66% revenue growth, reflecting robust demand across both its semiconductor and infrastructure software businesses.
Sales and EPS Growth Rates (Y/Y %)
Image Source: Zacks Investment Research
Industrial Products: EatonIndustrial Products emerges as the second compelling opportunity. While AI has fueled unprecedented demand for semiconductors and cloud infrastructure, it is also driving investment in the physical equipment needed to power and operate data centers. Companies supplying electrical equipment, factory automation systems, power management solutions and advanced manufacturing technologies are poised to benefit from this multi-year capital spending cycle.
Eaton stands out as a key beneficiary as utilities and hyperscalers ramp up investments in electrical distribution, grid modernization and power management infrastructure. Although this Zacks Rank #2 stock has declined roughly 15% month to date amid the broader AI infrastructure-led selloff, its long-term fundamentals remain intact. The Zacks Consensus Estimate calls for 2026 earnings growth of 10.6% on 15.9% revenue growth, underscoring continued strength in electrification, power management and AI-driven data center demand. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sales and EPS Growth Rates (Y/Y %)
Image Source: Zacks Investment Research
Key Takeaways Eaton is expected to post higher Q2 sales and earnings, with revenues projected to rise 13.9% YoY.Organic growth, acquisitions and robust end-market demand are expected to lift Eaton's Q2 results.Eaton's backlog and earnings outlook support the stock, though its 26.27X valuation tops the industry. Eaton Corporation (ETN - Free Report) is expected to report an improvement in both top and bottom lines when it posts second-quarter 2026 results on July 31, before market open.
The Zacks Consensus Estimate for ETN’s second-quarter revenues is pegged at $8 billion, indicating a 13.9% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $3.08 per share. The Zacks Consensus Estimate for ETN’s second-quarter earnings indicates growth of 0.33% in the past 60 days.
Image Source: Zacks Investment Research
Eaton’s Earnings Surprise History Looks PromisingEaton’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met in one, resulting in an average surprise of 0.98%.
Image Source: Zacks Investment Research
What the Zacks Model UnveilsOur proven model predicts a likely earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Eaton has an Earnings ESP of +0.32%.
Zacks Rank: Eaton currently carries a Zacks Rank #2.
Other stocks in the same Zacks Industrial Products sector that possess these two factors and are likely to come out with an earnings beat this season are CECO Environmental (CECO - Free Report) , MSC Industrial (MSM - Free Report) and W.W. Grainger (GWW - Free Report) , with Earnings ESP of +30.23%, +2.99% and +2.50%, respectively. CECO and MSM sport a Zacks Rank #1 each and GWW currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors Expected to Have Shaped Eaton’s Q2 EarningsEaton’s consistent investment in research and development has been helping enhance its existing product portfolio while facilitating the introduction of innovative solutions tailored to customer needs. This focus on innovation has been enabling the company to secure new orders, expand its market presence and support earnings growth. For the second quarter, Eaton expects organic revenue growth of 9-11%.
Eaton’s second-quarter earnings are likely to have benefited from the acquisition of Ultra PCS, which is expected to add $60 million to its Aerospace segment’s total revenues. Boyd Thermal acquisition is expected to add $360 million to the Electric Global segment.
Eaton’s diversified product portfolio has also been helping it win new orders and steadily build the backlog. The expanding backlog provides strong revenue visibility, while the growing pipeline of future business continues to support the company’s growth prospects and boosted second-quarter earnings.
Eaton’s second-quarter earnings are likely to have benefited from robust demand across its Data Centers, Utilities, Commercial & Institutional and Commercial Aerospace end markets.
Eaton Stock Trading at a PremiumEaton’s stock is currently overvalued compared with its industry on a forward 12-month P/E multiple basis (P/E F12M), as shown in the chart below. ETN is currently trading at 26.27X compared with its industry average of 23.7X.
Image Source: Zacks Investment Research
Eaton’s Price PerformanceEaton has gained 9% in the past six months, outperforming the industry’s rally of 7.1%.
Image Source: Zacks Investment Research
Investment ThesisEaton continues to benefit from robust demand across its diverse business segments. The strong focus on innovation, supported by sustained investments in research and development, has enabled the company to continually enhance the quality and performance of its products. Courtesy of strong demand and proper cost management, Eaton expects its segment operating margin in the range of 22.6-23% in the second quarter.
Effective power management is essential to the success of a broad range of projects, and Eaton has established itself as a reliable provider of these solutions. The company’s ability to meet urgent and complex customer needs further enhances its competitive position in the market.
With operations spanning nearly 180 countries and a globally distributed manufacturing base, Eaton enjoys a well-diversified revenue stream. However, this broad international presence also exposes the company to geopolitical uncertainties, which could lead to potential order disruptions and operational challenges.
Summing UpEaton’s rising earnings estimates, coupled with the expanding backlog, are expected to further support its overall performance. Steady demand, improving end-market conditions and a growing backlog point to a healthy pipeline of new orders.
The stock remains an attractive investment, supported by a strengthening earnings outlook and solid contributions from both organic growth and strategic acquisitions.
Despite Eaton's premium valuation, existing shareholders may consider retaining their positions, while prospective investors may find this high-quality stock an attractive addition ahead of its upcoming earnings release.
Key Takeaways Eaton leads Emerson on analyst sentiment, price performance and growth estimates.Eaton shares have gained 18.4% year to date versus 13.5% for Emerson, despite a higher valuation.Eaton targets data centers and grid upgrades, while Emerson leans on automation and software. Growing investments in automation, artificial intelligence, industrial software, robotics, and digital infrastructure are fueling growth for industrial technology companies such as Eaton Corporation (ETN - Free Report) and Emerson Electric (EMR - Free Report) .
Eaton is a global leader in power management and electrical systems, while Emerson specializes in engineering and automation technologies. Rising demand for electrification, data centers, and advanced manufacturing is creating strong long-term growth opportunities.
With innovative product portfolios, recurring revenue streams and strong exposure to digital transformation trends, both companies are well-positioned to benefit.
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 capitalize on several long-term growth trends, including grid modernization, data center expansion, industrial automation, the energy transition, and the recovery of aerospace markets. Its robust order backlog highlights strong customer demand and reflects the company’s ability to deliver mission-critical power management solutions across a broad range of end markets.
The company continues to execute a disciplined growth strategy centered on innovation and sustainability. Over the next decade, Eaton plans to invest approximately $3 billion in research and development to develop advanced, energy-efficient technologies and sustainable solutions that address evolving customer needs while strengthening its competitive position.
Strategic acquisitions remain a key component of Eaton’s expansion strategy. In the first quarter, the company completed nearly $11 billion in acquisitions, enhancing its presence in high-growth, high-margin markets and supporting long-term earnings growth.
The rapid expansion of AI-driven data centers presents another significant opportunity, as these facilities require higher power capacity and energy density. Eaton is strengthening its position across the electrical power value chain while benefiting from solid demand in both data center and utility markets. The company is also experiencing continued strength in commercial aerospace and defense. Its diversified exposure across commercial, industrial, utility, aerospace, and residential markets reduces reliance on any single sector or customer.
In addition, Eaton remains focused on improving operational efficiency through productivity initiatives, portfolio optimization and disciplined integration of acquisitions. Combined with favorable industry trends and continued investment in innovation, these efforts are expected to support margin expansion, reinforce its competitive advantages and drive sustainable long-term growth.
Factors to Consider for EMREmerson has established a strong position in industrial automation while expanding its presence in high-value software and digital solutions. The company has streamlined its portfolio by divesting non-core and underperforming businesses, enabling it to focus resources on its core automation and technology operations.
This transformation has positioned Emerson as a more focused industrial technology company with greater exposure to automation, test and measurement, and intelligent manufacturing. Its integrated portfolio of hardware, software, and analytics solutions serves a wide range of industries, including energy, life sciences, chemicals and advanced manufacturing.
The company continues to benefit from healthy demand across most end markets. In the second quarter of fiscal 2026, underlying sales increased 0.5% year over year. For fiscal 2026, Emerson expects underlying sales to grow approximately 3%, supported by strength in life sciences, aerospace and defense, liquefied natural gas (LNG), and power markets. Ongoing investments in sustainability and digital transformation are also expected to support long-term growth.
Acquisitions remain an important part of Emerson’s strategy to broaden its market presence, strengthen customer relationships, and enhance its product portfolio. At the same time, continued investments in industrial software, AI-enabled automation and digital technologies reinforce its competitive position as manufacturers increasingly adopt connected and intelligent operations.
On the downside, Emerson continues to face pressure from rising operating costs. Although restructuring initiatives are aimed at improving efficiency and optimizing its global asset base, they may weigh on near-term profitability. Additionally, elevated debt levels could increase financial obligations and limit earnings growth in the coming quarters.
Price Performance of ETN and EMRETN shares have gained 18.4% year to date, while EMR shares have gained 13.5% in the same time period.
Image Source: Zacks Investment Research
Estimates for ETN and EMRThe Zacks Consensus Estimate for ETN’s 2026 revenues implies a year-over-year increase of 15.9%, while that for EPS implies a year-over-year increase of 10.6%. EPS estimates witnessed an upward revision of 2 cents in the past 30 days. The expected long-term earnings growth rate is 11.7%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EMR’s fiscal 2026 revenues implies a year-over-year increase of 4.3%, and that for EPS implies a year-over-year increase of 8.2%. EPS estimates witnessed no movement in the past 30 days. The expected long-term earnings growth rate is 9.6%.
Image Source: Zacks Investment Research
Are ETN and EMR Shares Expensive?Eaton is trading at a forward 12-month price-to-earnings of 27.12X, above the median of 23.86X over the last five years.
Emerson is trading at a forward 12-month price-to-earnings of 21.25X, above the median of 19.62X over the last five years.
Eaton shares are more expensive than Emerson’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.
Healthy demand across process and hybrid industries and accretive acquisitions augur well for Emerson. As global manufacturers increasingly invest in automation, energy efficiency, and digital transformation, Emerson is well positioned to benefit from these long-term structural trends.
Eaton carries a Zacks Rank #2 (Buy), while Emerson carries a Zacks Rank #4 (Sell). Given positive analyst sentiment, price performance and growth estimates, Eaton has an edge over Emerson.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
