Eaton Corp (NYSE:ETN) Stock

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.

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Eaton shares down after reporting Q4 results, with revenue of $6.24B falling short of $6.34B consensus. However, strong orders and backlog growth expected to lead to outperformance.

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Shares of companies in the broader industrial sector are trading lower amid overall market weakness on US consumer and economic concerns.

Eaton Corp's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) short percent of float has fallen 6.98% since its last report. The company recently reported that it has 4.73 million shares sold short, which is 1.2% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.03 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?utm_source=insights&amp;adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?utm_source=insights&amp;adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Eaton Corp Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1740070830_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Eaton Corp has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Eaton Corp's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Eaton Corp's peer group average for short interest as a percentage of float is 10.81%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?utm_source=insights&amp;adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Is Eaton Corp Gaining or Losing Market Support?

Evercore ISI Group analyst David Raso maintains Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) with a In-Line and lowers the price target from $382 to $326.

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Evercore ISI Group Maintains In-Line on Eaton Corp, Lowers Price Target to $326

Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) has outperformed the market over the past 5 years by 11.61% on an annualized basis producing an average annual return of 25.91%. Currently, Eaton Corp has a market capitalization of $123.50 billion. 
Buying $1000 In ETN: If an investor had bought $1000 of ETN stock 5 years ago, it would be worth $3,057.76 today based on a price of $312.51 for ETN at the time of writing.
<h3>Eaton Corp's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1739979913_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have This Much Today

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>DE</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>02/21/25</td>
<td>$500.00</td>
<td>$94.1K</td>
<td>607</td>
<td>6.2K</td>
</tr>
<tr>
<td>HEES</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$90.00</td>
<td>$45.5K</td>
<td>6.4K</td>
<td>1.0K</td>
</tr>
<tr>
<td>LUNR</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$20.00</td>
<td>$123.0K</td>
<td>3.2K</td>
<td>522</td>
</tr>
<tr>
<td>GD</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>02/21/25</td>
<td>$245.00</td>
<td>$33.3K</td>
<td>38</td>
<td>257</td>
</tr>
<tr>
<td>UBER</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>12/19/25</td>
<td>$30.00</td>
<td>$263.0K</td>
<td>4.5K</td>
<td>200</td>
</tr>
<tr>
<td>RTX</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$124.00</td>
<td>$62.8K</td>
<td>1.1K</td>
<td>74</td>
</tr>
<tr>
<td>FLR</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/17/25</td>
<td>$57.50</td>
<td>$88.3K</td>
<td>128</td>
<td>50</td>
</tr>
<tr>
<td>ETN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$350.00</td>
<td>$118.7K</td>
<td>227</td>
<td>35</td>
</tr>
<tr>
<td>GEV</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$300.00</td>
<td>$187.5K</td>
<td>439</td>
<td>25</td>
</tr>
<tr>
<td>AXON</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>03/20/26</td>
<td>$500.00</td>
<td>$26.2K</td>
<td>1</td>
<td>8</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• For DE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>), we notice a call option sweep that happens to be bearish, expiring in 3 day(s) on February 21, 2025. This event was a transfer of 277 contract(s) at a $500.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $94.1K, with a price of $340.0 per contract. There were 607 open contracts at this strike prior to today, and today 6220 contract(s) were bought and sold. 
• For HEES (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HEES#NASDAQ">HEES</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on February 21, 2025. This event was a transfer of 46 contract(s) at a $90.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $45.5K, with a price of $990.0 per contract. There were 6477 open contracts at this strike prior to today, and today 1071 contract(s) were bought and sold. 
• Regarding LUNR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>), we observe a call option sweep with bearish sentiment. It expires in 122 day(s) on June 20, 2025. Parties traded 200 contract(s) at a $20.00 strike. This particular call needed to be split into 12 different trades to become filled. The total cost received by the writing party (or parties) was $123.0K, with a price of $615.0 per contract. There were 3225 open contracts at this strike prior to today, and today 522 contract(s) were bought and sold. 
• For GD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), we notice a call option trade that happens to be neutral, expiring in 3 day(s) on February 21, 2025. This event was a transfer of 247 contract(s) at a $245.00 strike. The total cost received by the writing party (or parties) was $33.3K, with a price of $135.0 per contract. There were 38 open contracts at this strike prior to today, and today 257 contract(s) were bought and sold. 
• Regarding UBER (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), we observe a call option trade with neutral sentiment. It expires in 304 day(s) on December 19, 2025. Parties traded 50 contract(s) at a $30.00 strike. The total cost received by the writing party (or parties) was $263.0K, with a price of $5260.0 per contract. There were 4564 open contracts at this strike prior to today, and today 200 contract(s) were bought and sold. 
• Regarding RTX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), we observe a put option sweep with bullish sentiment. It expires in 3 day(s) on February 21, 2025. Parties traded 388 contract(s) at a $124.00 strike. This particular put needed to be split into 17 different trades to become filled. The total cost received by the writing party (or parties) was $62.8K, with a price of $162.0 per contract. There were 1170 open contracts at this strike prior to today, and today 74 contract(s) were bought and sold. 
• For FLR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLR#NYSE">FLR</a>), we notice a put option trade that happens to be bearish, expiring in 58 day(s) on April 17, 2025. This event was a transfer of 48 contract(s) at a $57.50 strike. The total cost received by the writing party (or parties) was $88.3K, with a price of $1840.0 per contract. There were 128 open contracts at this strike prior to today, and today 50 contract(s) were bought and sold. 
• For ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>), we notice a put option sweep that happens to be bullish, expiring in 3 day(s) on February 21, 2025. This event was a transfer of 35 contract(s) at a $350.00 strike. This particular put needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $118.7K, with a price of $3400.0 per contract. There were 227 open contracts at this strike prior to today, and today 35 contract(s) were bought and sold. 
• For GEV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), we notice a call option trade that happens to be bullish, expiring in 3 day(s) on February 21, 2025. This event was a transfer of 25 contract(s) at a $300.00 strike. The total cost received by the writing party (or parties) was $187.5K, with a price of $7500.0 per contract. There were 439 open contracts at this strike prior to today, and today 25 contract(s) were bought and sold. 
• Regarding AXON (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>), we observe a call option trade with bearish sentiment. It expires in 395 day(s) on March 20, 2026. Parties traded 1 contract(s) at a $500.00 strike. The total cost received by the writing party (or parties) was $26.2K, with a price of $26250.0 per contract. There were 1 open contracts at this strike prior to today, and today 8 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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10 Industrials Stocks Whale Activity In Today's Session

Deep-pocketed investors have adopted a bullish approach towards Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in ETN usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Eaton Corp. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 62% leaning bullish and 37% bearish. Among these notable options, 6 are puts, totaling $390,931, and 2 are calls, amounting to $98,130.
<h3>Expected Price Movements</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $220.0 to $450.0 for Eaton Corp over the recent three months. 
<h3>Analyzing Volume &amp; Open Interest</h3>
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Eaton Corp's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Eaton Corp's significant trades, within a strike price range of $220.0 to $450.0, over the past month.
<h3>Eaton Corp 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1739477725_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th align="right">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>ETN</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/17/25</td>
<td>$44.9</td>
<td>$42.7</td>
<td>$44.9</td>
<td>$350.00</td>
<td>$130.2K</td>
<td>404</td>
<td align="right">29</td>
</tr>
<tr>
<td>ETN</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/17/25</td>
<td>$44.9</td>
<td>$42.7</td>
<td>$44.8</td>
<td>$350.00</td>
<td>$94.0K</td>
<td>404</td>
<td align="right">50</td>
</tr>
<tr>
<td>ETN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>03/21/25</td>
<td>$3.7</td>
<td>$3.7</td>
<td>$3.7</td>
<td>$330.00</td>
<td>$69.9K</td>
<td>1.0K</td>
<td align="right">149</td>
</tr>
<tr>
<td>ETN</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$56.3</td>
<td>$55.0</td>
<td>$55.5</td>
<td>$350.00</td>
<td>$49.9K</td>
<td>217</td>
<td align="right">14</td>
</tr>
<tr>
<td>ETN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>03/20/26</td>
<td>$6.3</td>
<td>$6.2</td>
<td>$6.2</td>
<td>$220.00</td>
<td>$49.0K</td>
<td>3</td>
<td align="right">10</td>
</tr>
</tbody>
</table>

<h3>About Eaton Corp</h3>
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.
<h3>Where Is Eaton Corp Standing Right Now?</h3>
<ul>
<li>Trading volume stands at 1,943,357, with ETN's price down by -0.88%, positioned at $307.15.</li>
<li>RSI indicators show the stock to be may be approaching oversold.</li>
<li>Earnings announcement expected in 75 days.</li>
</ul>
<h3>What The Experts Say On Eaton Corp</h3>
A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $365.25.
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&#x2A; In a cautious move, an analyst from Melius Research downgraded its rating to Hold, setting a price target of $373. 
&#x2A; Consistent in their evaluation, an analyst from RBC Capital keeps a Outperform rating on Eaton Corp with a target price of $405. 
&#x2A; An analyst from JP Morgan persists with their Overweight rating on Eaton Corp, maintaining a target price of $348. 
&#x2A; An analyst from Wells Fargo has decided to maintain their Equal-Weight rating on Eaton Corp, which currently sits at a price target of $335. 
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Eaton Corp options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Eaton Corp Unusual Options Activity For February 13

The latest round of tariffs on metal imports, announced by the Trump administration, is set to create significant investment opportunities in ETFs <a href="https://in.benzinga.com/25/02/43587918/donald-trumps-expected-tariffs-on-aluminum-steel-imports-may-impact-domestic-companies-heres-a-list-of-metal-etfs-that-could-be-affected">focused on U.S. steelmakers. </a>
With a 25% tariff now set to be imposed on all steel and aluminum imports, domestic steel producers are expected to gain market share and see rising profitability. A KeyBanc Capital Markets report shows how these tariffs could reshape the steel market, reducing finished steel imports by 14% year-over-year in 2025, primarily impacting sheet and plate steel. 
Analysts anticipate U.S. steel mills capturing market share previously held by foreign competitors, reinforcing the bullish outlook for U.S. steel companies-focused ETFs.
Three <a href="https://www.benzinga.com/etfs">standout ETFs</a> are VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>), SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>), and Global X U.S. Infrastructure Development ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/PAVE#BATS">PAVE</a>).
VanEck Steel ETF 
This is a direct play on the steel sector, offering concentrated exposure to leading steel manufacturers. With holdings in Nucor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>), Cleveland-Cliffs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>), Steel Dynamics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), and United States Steel Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>), the fund is well-positioned to benefit from higher domestic steel prices.
The new tariffs are expected to curb foreign steel imports, which accounted for a substantial share of the U.S. market. This will increase demand for domestically produced steel, boosting revenue for companies within SLX&#8217;s portfolio.
As steel prices rise, profit margins for U.S. steel producers will expand, which might be a boost for stock valuations.
Also Read: <a href="https://in.benzinga.com/markets/equities/25/02/43613133/trumps-25-tarrifs-a-self-inflicted-wound-says-economist-amid-warnings-of-fewer-american-jobs-peter-schiff-says-youll-pay-more-for-cars-and-homes">Trump&#8217;s 25% Tarrifs A &#8216;Self-Inflicted Wound,&#8217; Says Economist Amid Warnings Of Fewer American Jobs — Peter Schiff Says You&#8217;ll Pay More For Cars And Homes</a>
SPDR S&amp;P Metals &amp; Mining ETF
XME provides broader exposure to the metals and mining sector but is still heavily weighted toward steel stocks like Steel Dynamics, Nucor and United States Steel Corp.
The tariff-induced price hikes on imported steel will force industries relying on metal, such as construction, automotive, and energy, to turn to U.S.-based suppliers. Steel Dynamics, Cleveland-Cliffs, and Nucor stand to gain from increased domestic sales, while higher scrap prices further support pricing power.
Global X U.S. Infrastructure Development ETF
PAVE is a more diversified play, offering exposure to the broader infrastructure sector, which is a major consumer of steel. Infrastructure companies like Trane Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TT#NYSE">TT</a>) and Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) are part of the ETF&#8217;s portfolio.
With increased steel demand for construction projects and infrastructure spending, U.S. steel producers will see long-term growth.
Supply And Demand Shift
KeyBanc projects U.S. real carbon steel demand to grow by around 2% in 2025 (compared to a 1-2% decline in 2024), supported by rebounds in oil &amp; gas, industrial, and construction sectors. Moreover, Hot Rolled Coil (HRC) prices are expected to rise from $750 per ton to $810 per ton in 2025, buoyed by tariff-driven demand shifts and rising scrap prices.
KeyBanc analysts also upgraded Steel Dynamics to Overweight, citing improved operational efficiencies and pricing tailwinds.
The Trump administration's aggressive trade stance is designed to protect U.S. steelmakers from cheap foreign imports. KeyBanc said that analysts anticipate a boost in domestic steel production, with sector utilization rising to 78% in 2025.
Earnings Growth for Steel Stocks
Steel Dynamics: KeyBanc raised the estimated 2025 EBITDA to $2.57 billion from $2.13 billion, driven by higher utilization and rising steel prices.
Cleveland-Cliffs: The research firm raised EBITDA expectation to $1.034 billion amid improved demand for U.S.-made steel.
Nucor: Holding a Sector Weight rating, NUE's diversified steel operations make it a stable long-term play.
Parting Thoughts
The tariffs are set to create a favorable market for domestic steelmakers, and ETFs with significant exposure to U.S. steel stocks stand to gain. With KeyBanc's bullish outlook on steel demand and pricing, the ETFs discussed in this piece could see substantial upside in the months ahead.
Read Next:<a href="https://www.benzinga.com/news/global/25/02/43635740/eu-president-vows-firm-and-proportionate-countermeasures-after-trump-imposes-steel-aluminum-tariffs"> </a>
<ul>
<li><a href="https://www.benzinga.com/news/global/25/02/43635740/eu-president-vows-firm-and-proportionate-countermeasures-after-trump-imposes-steel-aluminum-tariffs">EU President Vows &#8216;Firm And Proportionate Countermeasures&#8217; After Trump Imposes Steel, Aluminum Tariffs</a></li>
</ul>
Photo: Vladimir Mulder/Shutterstock.com

Trump's Metal Tariffs Set Stage For US Steel ETF Gains

Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) has outperformed the market over the past 15 years by 4.23% on an annualized basis producing an average annual return of 16.34%. Currently, Eaton Corp has a market capitalization of $124.09 billion. 
Buying $100 In ETN: If an investor had bought $100 of ETN stock 15 years ago, it would be worth $988.51 today based on a price of $314.00 for ETN at the time of writing.
<h3>Eaton Corp's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1738768512_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In Eaton Corp 15 Years Ago Would Be Worth This Much Today

Throughout the last three months, 13 analysts have evaluated Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>), offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">5</td>
<td align="right">3</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $390.46, along with a high estimate of $440.00 and a low estimate of $335.00. This current average reflects an increase of 6.18% from the previous average price target of $367.75. 
<img src="https://www.benzinga.com/files/images/story/2025/1738616441_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The analysis of recent analyst actions sheds light on the perception of Eaton Corp by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Deane Dray</td>
<td>RBC Capital</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$405.00</td>
<td>$407.00</td>
</tr>
<tr>
<td>Joseph O'Dea</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$335.00</td>
<td>$350.00</td>
</tr>
<tr>
<td>Scott Davis</td>
<td>Melius Research</td>
<td>Announces</td>
<td>Hold</td>
<td>$373.00</td>
<td>-</td>
</tr>
<tr>
<td>Stephen Tusa</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$348.00</td>
<td>$350.00</td>
</tr>
<tr>
<td>Andrew Kaplowitz</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$410.00</td>
<td>$440.00</td>
</tr>
<tr>
<td>Joseph O'Dea</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$350.00</td>
<td>$365.00</td>
</tr>
<tr>
<td>Deane Dray</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$392.00</td>
<td>$374.00</td>
</tr>
<tr>
<td>Andrew Kaplowitz</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$440.00</td>
<td>$394.00</td>
</tr>
<tr>
<td>Stephen Volkmann</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Buy</td>
<td>$440.00</td>
<td>$400.00</td>
</tr>
<tr>
<td>Julian Mitchell</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$353.00</td>
<td>$320.00</td>
</tr>
<tr>
<td>Amit Mehrotra</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$431.00</td>
<td>$330.00</td>
</tr>
<tr>
<td>Andrew Obin</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$410.00</td>
<td>$350.00</td>
</tr>
<tr>
<td>David Raso</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$389.00</td>
<td>$333.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Eaton Corp. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Eaton Corp compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Eaton Corp's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Eaton Corp's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/ETN/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Eaton Corp analyst ratings.</a>
<h2>Get to Know Eaton Corp Better</h2>
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.
<h3>Eaton Corp: A Financial Overview</h3>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Challenges: Eaton Corp's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -1.65%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Eaton Corp's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.56% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Eaton Corp's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.16%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.5%, the company showcases effective utilization of assets.
Debt Management: Eaton Corp's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.53.
<h2>What Are Analyst Ratings?</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What Analysts Are Saying About Eaton Corp Stock

RBC Capital analyst Deane Dray maintains Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) with a Outperform and lowers the price target from $407 to $405.

RBC Capital Maintains Outperform on Eaton Corp, Lowers Price Target to $405

Wells Fargo analyst Joseph O'Dea maintains Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) with a Equal-Weight and lowers the price target from $350 to $335.

Wells Fargo Maintains Equal-Weight on Eaton Corp, Lowers Price Target to $335

On CNBC, Stephanie Link Announced Bought More Eaton

Eaton Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) shares are trading lower on Friday after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43380322/eaton-reports-record-fourth-quarter-2024-results-with-strong-orders-and-backlog-growth-and-issues-" rel="noreferrer noopener">reported fourth-quarter 2024 results</a>.
Revenue rose 5% year-over-year to $6.24 billion, missing the consensus of $6.34 billion.
Electrical Americas segment sales rose 9% YoY to $2.9 billion, aided by organic sales growth. Backlog at the end of the year rose 29% organically. 
Electrical Global segment sales grew 4% to $1.6 billion in the quarter. Backlog increased 16% organically. 
Notably, Hurricane Helene and labor strikes in the aerospace industry negatively impacted sales by about $80 million.
Segment margins reached 24.7%, an expansion of 190 basis points YoY. Adjusted EPS rose 11% Y/Y to $2.83, <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">beating the consensus of $2.81</a>.
Operating cash flow stood at $1.6 billion, and free cash flow came in at $1.3 billion in the quarter.
Craig Arnold, Eaton chairman and chief executive officer, said, &#8220;Our strong performance in 2024 was a result of robust demand and our team&#8217;s successful execution. We&#8217;re confident in that continued momentum into 2025 as Eaton is in a unique position to deliver differentiated performance amid powerful megatrends driving higher growth in our markets.&#8221;
Guidance: For 2025, Eaton projects organic growth of 7% &#8211; 9% and adjusted EPS<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> of $11.80 &#8211; $12.20 vs. $12.00 consensus estimate</a>.
For the first quarter, the company expects organic growth of 5.5% &#8211; 7.5% and adjusted EPS of $2.65 &#8211; $2.75, compared to the street view of $2.70.
Goldman Sachs analyst Joe Ritchie sees this as an inline <a target="_blank" href="https://www.benzinga.com/quote/ETN/analyst-ratings" rel="noreferrer noopener">fourth-quarter report</a>.
However, with strong order performance and backlog, along with recent share weakness from DeepSeek news, the analyst anticipates that the stock will outperform today.
Price Action: ETN shares are down 0.71% at $324.79 at the last check Friday.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43282713/how-deepseeks-breakthrough-is-changing-the-landscape-for-multi-industrials" target="_blank" rel="noreferrer noopener">How DeepSeek&#8217;s Breakthrough Is Changing The Landscape For Multi-Industrials</a></li>
</ul>
Photo via Shutterstock.

General

Eaton shares are trading lower after the company reported worse-than-expected Q4 sales results and issued Q1 adjusted EPS guidance below estimates.

For the full year 2025, the company is issuing the following guidance:
<ul>
<li>Organic growth of 7-9%</li>
<li>Segment margins of 24.4-24.8%</li>
<li>Earnings per share between $10.60 and $11.00, up 14% at the midpoint over the prior year</li>
<li>Adjusted earnings per share between $11.80 and $12.20, up 11% at the midpoint over the prior year</li>
</ul>
For the first quarter of 2025, the company anticipates:
<ul>
<li>Organic growth of 5.5-7.5%</li>
<li>Segment margins of 23.7-24.1%</li>
<li>Earnings per share between $2.30 and $2.40</li>
<li>Adjusted earnings per share between $2.65 and $2.75</li>
</ul>

Eaton For 2025 Expects 7-9% Organic Growth, And Adjusted EPS Between $11.80 And $12.20 Vs. $10.71 Est.; For Q1 Expects 5.5-7.5% Organic Growth, And Adjusted EPS Of $2.65-$2.75 Vs. $2.81 Est.

Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) reported quarterly earnings of $2.83 per share which beat the analyst consensus estimate of $2.81 by 0.71 percent. This is a 10.98 percent increase over earnings of $2.55 per share from the same period last year. The company reported quarterly sales of $6.240 billion which missed the analyst consensus estimate of $6.337 billion by 1.54 percent. This is a 4.58 percent increase over sales of $5.967 billion the same period last year.

Earnings Beats

Earnings Misses

Eaton Corp Q4 2024 Adj. EPS $2.83 Beats $2.81 Estimate, Sales $6.240B Miss $6.337B Estimate

<h3>Companies Reporting Before The Bell</h3>
• Novartis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVS#NYSE">NVS</a>) is estimated to report quarterly earnings at $1.79 per share on revenue of $12.77 billion. 
• Zapp Electric Vehicles (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZAPP#NASDAQ">ZAPP</a>) is projected to report earnings for its Fiscal Year 2024. 
• Dorian LPG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPG#NYSE">LPG</a>) is estimated to report quarterly earnings at $0.70 per share on revenue of $89.89 million. 
• Piper Sandler (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PIPR#NYSE">PIPR</a>) is projected to report quarterly earnings at $3.96 per share on revenue of $452.49 million. 
• WisdomTree (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WT#NYSE">WT</a>) is projected to report quarterly earnings at $0.18 per share on revenue of $111.06 million. 
• RBC Bearings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBC#NYSE">RBC</a>) is estimated to report quarterly earnings at $2.20 per share on revenue of $394.43 million. 
• OneMain Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMF#NYSE">OMF</a>) is projected to report quarterly earnings at $1.15 per share on revenue of $1.20 billion. 
• W.W. Grainger (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWW#NYSE">GWW</a>) is likely to report quarterly earnings at $9.74 per share on revenue of $4.24 billion. 
• Virtus Inv (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRTS#NYSE">VRTS</a>) is likely to report quarterly earnings at $7.66 per share on revenue of $214.69 million. 
• Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) is expected to report quarterly earnings at $2.82 per share on revenue of $6.36 billion. 
• Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) is likely to report quarterly earnings at $2.02 per share on revenue of $13.18 billion. 
• First Hawaiian (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FHB#NASDAQ">FHB</a>) is estimated to report quarterly earnings at $0.41 per share on revenue of $203.83 million. 
• Broadridge Financial Soln (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BR#NYSE">BR</a>) is estimated to report quarterly earnings at $1.35 per share on revenue of $1.57 billion. 
• Vestis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSTS#NYSE">VSTS</a>) is likely to report quarterly earnings at $0.12 per share on revenue of $688.89 million. 
• Exxon Mobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) is expected to report quarterly earnings at $1.79 per share on revenue of $88.23 billion. 
• Revvity (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RVTY#NYSE">RVTY</a>) is expected to report quarterly earnings at $1.38 per share on revenue of $730.10 million. 
• Janus Henderson Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JHG#NYSE">JHG</a>) is projected to report quarterly earnings at $0.97 per share on revenue of $683.02 million. 
• Church &amp; Dwight Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHD#NYSE">CHD</a>) is estimated to report quarterly earnings at $0.76 per share on revenue of $1.57 billion. 
• Aon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) is estimated to report quarterly earnings at $4.26 per share on revenue of $4.21 billion. 
• Badger Meter (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>) is expected to report quarterly earnings at $1.07 per share on revenue of $201.60 million. 
• Franklin Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEN#NYSE">BEN</a>) is likely to report quarterly earnings at $0.56 per share on revenue of $2.73 billion. 
• Autoliv (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALV#NYSE">ALV</a>) is expected to report quarterly earnings at $2.85 per share on revenue of $2.73 billion. 
• LyondellBasell Industries (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYB#NYSE">LYB</a>) is likely to report quarterly earnings at $0.95 per share on revenue of $9.49 billion. 
• Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) is likely to report quarterly earnings at $0.94 per share on revenue of $35.07 billion. 
• Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) is expected to report quarterly earnings at $2.40 per share on revenue of $48.68 billion. 
• Charter Communications (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) is estimated to report quarterly earnings at $9.18 per share on revenue of $13.89 billion. 
• Brookfield Business (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBUC#NYSE">BBUC</a>) is likely to report earnings for its fourth quarter. 
• Brookfield Bus Partners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBU#NYSE">BBU</a>) is estimated to report earnings for its fourth quarter. 
• Brookfield Renewable (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEPC#NYSE">BEPC</a>) is likely to report quarterly loss at $0.36 per share on revenue of $2.01 billion. 
• Brookfield Renewable (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEP#NYSE">BEP</a>) is expected to report quarterly loss at $0.35 per share on revenue of $1.53 billion. 
• ArcBest (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCB#NASDAQ">ARCB</a>) is estimated to report quarterly earnings at $1.12 per share on revenue of $1.01 billion. 
• Gentex (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNTX#NASDAQ">GNTX</a>) is likely to report quarterly earnings at $0.48 per share on revenue of $598.58 million. 
• AbbVie (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) is estimated to report quarterly earnings at $2.98 per share on revenue of $14.81 billion. 
• Banco De Chile (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BCH#NYSE">BCH</a>) is projected to report quarterly earnings at $0.53 per share on revenue of $804.00 billion. 
• Booz Allen Hamilton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) is expected to report quarterly earnings at $1.51 per share on revenue of $2.86 billion. 
• Colgate-Palmolive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) is likely to report quarterly earnings at $0.90 per share on revenue of $5.05 billion. 
<h3>Companies Reporting After The Bell</h3>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ABBV

ARCB

BBUC

BEPC

CHTR

GNTX

Janus Henderson Group plc Ordinary Shares

PIPR

RVTY

VRTS

VSTS

ZAPP

Earnings Scheduled For January 31, 2025

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Maxim Group analyst Matt Galinko downgraded the rating for Logility Supply Chain Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGTY#NASDAQ">LGTY</a>) from Buy to Hold. Logility Supply Chain shares closed at $14.12 on Monday. <a href="https://www.benzinga.com/quote/LGTY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Melius Research analyst Ben Reitzes downgraded Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) from Buy to Hold and lowered the price target from $160 to $129. Advanced Micro Devices shares closed at $115.01 on Monday. <a href="https://www.benzinga.com/quote/AMD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Melius Research analyst Scott Davis downgraded the rating for Eaton Corporation plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) from Buy to Hold and announced a $373 price target. Eaton shares closed at $311.55 on Monday. <a href="https://www.benzinga.com/quote/ETN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Melius Research analyst Scott Davis downgraded Johnson Controls International plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>) from Buy to Hold and announced a $95 price target. Johnson Controls shares closed at $77.06 on Monday. <a href="https://www.benzinga.com/quote/JCI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Melius Research analyst Scott Davis downgraded the rating for Trane Technologies plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TT#NYSE">TT</a>) from Buy to Hold and announced a $398 price target. Trane Technologies shares closed at $367.62 on Monday. <a href="https://www.benzinga.com/quote/tt/analyst-ratings">See how other analysts view this stock.</a></li>
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Considering buying AMD stock? Here&#8217;s what analysts think: 
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BofA Securities analyst Andrew Obin has provided his view about the implication of DeepSeek on multi-industrial stocks and reiterated a Buy rating on the shares of Vertiv Holdings Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>), GE Vernova Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) and Eaton Corporation PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) with a price forecast of <a href="https://www.benzinga.com/quote/VRT/analyst-ratings">$165</a>, <a href="https://www.benzinga.com/quote/gev/analyst-ratings">$485</a> and <a href="https://www.benzinga.com/quote/etn/analyst-ratings">$410</a> respectively.
In December, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43267966/deepseeks-low-cost-model-reshapes-ai-landscape-experts-predict-shift-to-application-layer" rel="noreferrer noopener">Chinese startup DeepSeek</a> introduced its latest AI model, DeepSeek-V3, which has shown comparable performance to OpenAI&#8217;s GPT-4 across various benchmark tests, noted the analyst.
According to the analyst, Investors are wary that this technological breakthrough could result in reduced spending on AI infrastructure and power generation.
Also Read:<a href="https://www.benzinga.com//node/43274796"> Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World&#8217;s Richest People</a>
DeepSeek&#8217;s inference costs ($/million tokens) are approximately 70-90% lower than those of other AI models. The critical factor to monitor will be the capital expenditure plans of cloud service providers for 2025-2026, noted the analyst.
The technical report states that V3 utilized just 2.8 million GPU hours. At a rental rate of $2 per hour, this would total $5.6 million, per the analyst.
However, the analyst opined that DeepSeek-V3 was &#8220;distilled&#8221; using the previously launched DeepSeek-R1 model. Some media reports suggest that DeepSeek may have also used other open-source models, such as Meta Platforms Llama, implying that the actual training cost could be significantly higher than reported.
Venture capital investor Marc Andreessen referred to DeepSeek-R1 as a &#8220;Sputnik moment&#8221; for AI progress. However, the analyst interprets the Sputnik comparison as favorable for AI infrastructure companies.
Following the launch of Sputnik (October 4, 1957), the U.S. Federal space R&amp;D budget grew significantly, from $0.5 billion annually to over $10.5 billion in 1958.
When a new technology boosts efficiency, it typically reduces demand. However, it often leads to increased consumption, a phenomenon known as Jevons Paradox.
A similar situation occurred in U.S. steel production after the Bessemer process was introduced: between 1875 and 1900, steel prices dropped by around 90%, while production surged from 0.4 million tons per year to 60 million tons per year.
The analyst notes this will apply to the AI sector as well. Reduced training costs accelerate model improvements, and enhanced models create more use cases, resulting in greater inference demand.
For instance, the cost of GPT-4 output tokens has dropped by approximately 80% in under a year since its launch.
Cloud service providers are still experiencing growth in non-AI revenue, with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Azure non-AI revenue rising by 22% year-over-year in the quarter ended September.
Colocation companies, which make up about 50% of global data centers, continue to benefit from favorable market conditions, concluded the analyst.
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<li><a href="https://www.benzinga.com//node/43267966" target="_blank" rel="noreferrer noopener">DeepSeek&#8217;s Low-Cost Model Reshapes AI Landscape: Experts Predict Shift To &#8216;Application Layer&#8217;</a></li>
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Photo via Shutterstock: KhunkornStudio.

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