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Valued at a market cap of $122.5 billion, Eaton Corporation plc (ETN) is a power management company and a global technology leader in electrical components and systems. The Dublin, Ireland-based company’s current reportable segments are Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility.
This power management company’s shares have lagged behind the broader market over the past 52 weeks. ETN has gained 13% over this time frame, while the broader S&P 500 Index ($SPX) has soared 23.5%. Moreover, the stock is down 7.3% on a YTD basis, compared to SPX’s 4% rise during the same time frame.
Zooming in further, Eaton has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) almost 19% return over the past 52 weeks and a 4.7% gain on a YTD basis.

On Jan. 31, shares of ETN closed down marginally after its mixed Q4 earnings release. The company’s adjusted EPS of $2.83 increased around 11% from the year-ago quarter and slightly surpassed the forecasted figure. On the other hand, its revenue advanced 4.6% year-over-year to $6.2 billion but missed the Wall Street estimates by 1.7%. The revenue shortfall was primarily due to a decline in its e-mobility and vehicle segment sales, which were driven by weaknesses in light vehicle markets. Additionally, Hurricane Helene and aerospace industry strikes negatively impacted sales by about $80 million and further weighed on the results.
For the current fiscal year, ending in December, analysts expect Eaton's EPS to grow 11.4% year over year to $12.03. The company’s earnings surprise history is promising. It surpassed the Wall Street estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 12 “Strong Buy,” two “Moderate Buy,” and seven “Hold” ratings.

On Jan. 27, Jefferies maintained a “Buy” rating on ETN but lowered its price target to $390, which indicates a 26.7% potential upside from the current levels.
The mean price target of $378.95 represents a 23.1% upside from Eaton’s current price levels, while the Street-high price target of $431 suggests an upside potential of 40%.