Assessing Eaton Corp: Insights From 10 Financial Analysts

In the latest quarter, 10 analysts provided ratings for Eaton Corp ETN, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $345.1, a high estimate of $385.00, and a low estimate of $315.00. This current average reflects an increase of 0.35% from the previous average price target of $343.88.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Eaton Corp among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Eaton Corp. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Eaton Corp compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Eaton Corp's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Eaton Corp's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Eaton Corp analyst ratings.

About Eaton Corp

Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.

Breaking Down Eaton Corp's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Eaton Corp's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 8.25%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Eaton Corp's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.64% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Eaton Corp's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.16% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Eaton Corp's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.55% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Eaton Corp's debt-to-equity ratio is below the industry average. With a ratio of 0.55, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.