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Dublin, Ireland-based Eaton Corporation plc (ETN) is a diversified power management company and a global technology leader in electrical components and systems. With a market cap of $147.7 billion, Eaton employs over 92,000 people and does business in over 175 countries in the Americas, Indo-Pacific, and EMEA.
Companies worth $10 billion or more are generally described as "large-cap stocks," Eaton fits this bill perfectly. Eaton helps its customers manage electrical, hydraulic, and mechanical power more reliably, efficiently, safely, and sustainably.
Eaton recently touched its all-time high of $379.99 on Nov. 26 and is trading 1.6% below that peak. ETN stock has surged 29% over the past three months, outpacing the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund’s (GRID) 6.3% gains during the same time frame.
Eaton’s performance looks even more impressive over the longer term, as the stock has soared 55.2% on a YTD basis and 62.2% over the past 52 weeks, outperforming GRID’s 20.1% gains in 2024 and 28.5% returns over the past year.
To confirm the bullish trend, ETN has traded mostly above its 200-day moving average since last year with minor fluctuations and consistently above its 50-day moving average since mid-September.
Eaton’s stock prices dipped 3.3% after the release of its Q3 results on Oct. 31 as the company’s revenues fell marginally below analysts’ estimates. Nevertheless, the company’s overall performance remained more than impressive. Its effective execution has resulted in order acceleration and further backlog growth in a strong demand environment. Eaton’s net sales grew 7.9% year-over-year to over $6.3 billion while its adjusted earnings surged 13.9% compared to the year-ago quarter to over $1.1 billion.
Moreover, the company remains confident in its ability to close the year strong and expects continued positive momentum into 2025.
Eaton has substantially outperformed its peer AMETEK, Inc.’s (AME) 17.9% gains on a YTD basis and 23.7% returns over the past year.
Among the 20 analysts covering the ETN stock, the consensus rating is a “Moderate Buy.” As of writing, the stock is trading marginally below its mean price target of $375.06.
