Eaton stock: buy or sell?

ETN stock price: $83.54 -1.15% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

Eaton declined -1.15% today to $83.54 after marking all time highs on Sep/13. Friday was the 5th red session in a row, sliding in full a -4.50%.

Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products.

Should I buy Eaton stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Eaton stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ETN will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Eaton stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 10 ratings published for ETN stock in the last 30 days.

Is ETN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-3Robert W. BairdOutperformNeutral
2019-7-31Morgan Stanleyn/aEqual Weight
2019-6-6Barclaysn/aSell
2019-4-4Bank of AmericaNeutralBuy
2019-4-4Bank of AmericaBuyNeutral
2019-3-4Wells Fargo & Con/aBuy
2019-3-4Vertical ResearchHoldBuy
2019-1-8Wolfe ResearchOutperformMarket Perform
2019-1-7BarclaysUnderweightUnderweight
2019-1-3Credit Suisse Groupn/aOutperform

Eaton stock analysis

Daily outlook

After reaching all time highs on Sep/13, Eaton declined -1.15% today to $83.54.

Eaton declined -1.15% to $83.54 after reaching all time highs on Sep 13th. Since price and SMA200d lines crossed up on Aug/16, ETN climbed $7.63 (10.05%). From a daily outlook perspective, ETN is drawing an uptrend of rising tops and rising bottoms. Since its last top on Sep 13th at $89.07, price slid and found support around $84.05. Breaking down under $84.05 would cancel the current uptrend and it might slide further to test lower supports. Note that $89.07 might act as a resistance line. Trading the long side, we should wait to a new breakout over $89.07 to find the next buy point. On May, SMA100d and SMA200d crossed up triggering a rise of 7.01%. On Sep/13, ETN hit new all time highs, pushing higher previous ATH of $88.10 recorded on September/12. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

ETN stock chart (daily)

Weekly outlook

Eaton closed this week at $83.54 and eased a terrible -4.49%. Late August ETN boosted an impressive 5.12% in just one week.

Not so far away is the last price record Eaton marked last week. Eaton stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since price and SMA40w lines crossed up late August, ETN climbed $6.95 (9.07%). Since early May when SMA20w and SMA40w crossed up, ETN price gained $1.46 per share (1.78%).

ETN stock chart (weekly)

Eaton stock price history

Eaton stock historical price chart

ETN stock reached all-time highs on Sep 13th with a price of $89.07.

Eaton stock price target is $81.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' ETN stock price predictions in the hope that they will be met as they may be wrong and not met. We found 6 price targets for ETN stock released in the last month:
ETN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-3Robert W. BairdDowngrades$89.00$82.00-7.9%
2019-7-31Morgan StanleyRaises Target$88.00$90.002.3%
2019-6-6BarclaysReiteratesn/a$76.00-
2019-4-4Bank of AmericaDowngradesn/a$88.00-
2019-1-7BarclaysLowers Target$75.00$73.00-2.7%
2019-1-3Credit Suisse GroupReiterates$85.00$80.00-5.9%
(in average)$84.30$81.50-3.0%
Moving in a range from $90.00 and $73.00, the price target for ETN stock is $81.50. In average, analysts' outlook on ETN price target is negative, downgrading the forecast by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Eaton presented its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this report.
ETN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q32017-10-311.251.250.0%
2017-Q42018-02-011.211.296.6%
2018-Q12018-05-011.061.13.8%
2018-Q22018-07-311.321.395.3%
2018-Q32018-10-301.441.43-0.7%
2018-Q42019-01-311.431.462.1%
2019-Q12019-04-291.24n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a decent gain of 5.91% to $21,609.00 million dollars. Nonetheless, its income margin (compared to sales) decreased to 9.93%, that is $2,145.00 million.

To have an up to date view of the financial situation of Eaton, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Eaton TTM sales up to March 2019 were $21,663.00 and income was $2,179.00 M dollars. When comparing this TTM figures with the last reported annuality, we can review Eaton business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, remained constant a neutral 0.25%. Aligned with this, profit margin (net income/revenues) stayed steady at 9.93%.

ETN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$22,050 M-$1,860 M8.4%-
2014$22,552 M2.28%$1,793 M8.0%-3.60%
2015$20,855 M-7.52%$1,979 M9.5%10.37%
2016$19,747 M-5.31%$1,922 M9.7%-2.88%
2017$20,404 M3.33%$2,985 M14.6%55.31%
2018$21,609 M5.91%$2,145 M9.9%-28.14%
TTM $21,663 M0.25%$2,179 M10.1%1.59%

Quarterly financial results

Eaton posted $5,305.00 million in revenues for 2019-Q1, a -2.82% decline compared to previous quarter. Reported quarter earnings marked $522.00 M with a profit margin of 9.84%. Profit margin depreciated a -1.72% compared to previous quarter when profit margin was 11.56%. When comparing turnover to same quarter last year, Eaton sales marked a slightly good growth and inched a 1.03%.
ETN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,130 M-$515 M10.0%-
2017-Q3$5,211 M1.58%$1,399 M26.8%171.65%
2017-Q4$5,213 M0.04%$634 M12.2%-54.68%
2018-Q1$5,251 M0.73%$488 M9.3%-23.03%
2018-Q2$5,487 M4.49%$610 M11.1%25.00%
2018-Q3$5,412 M-1.37%$416 M7.7%-31.80%
2018-Q4$5,459 M0.87%$631 M11.6%51.68%
2019-Q1$5,305 M-2.82%$522 M9.8%-17.27%

Eaton ownership

When you are planning to invest in shares of a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Eaton, 0.25% of all outstanding shares are owned by its staff.

Bearish positions for ETN stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

ETNAOSEMRRBC
Market cap$35.1 B$6.7 B$40.1 B$3.1 B
Total shares420.0 M138.4 M615.1 M41.9 M
Float shares418.6 M135.1 M610.8 M41.5 M
  - Institutional holdings (%)80.4%98.7%74.2%95.7%
  - Insider holdings (%)0.2%0.9%0.6%1.3%
Shares in short selling0.0%0.0%0.0%0.0%

Eaton summary

Friday, September 20th, 2019
Open$85.34
Close$83.54
Day range$83.49 - $85.18
Previous close$84.51
Session gain-1.15%
Average true range$1.91
50d mov avg$80.58
100d mov avg$79.84
200d mov avg$77.37
Daily patternlb03a
Weekly pattern lt06a

Eaton performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Eaton against A.O Smith, Emerson Electric and Regal Beloit in the following table:
Stock3m6m12m
ETNEaton1.26%7.57%-2.20%
AOSA.O Smith6.01%-5.44%-17.27%
EMREmerson Electric0.15%-0.94%-13.86%
RBCRegal Beloit-9.46%-8.63%-13.31%

Eaton competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Eaton. We chose 3 companies as Eaton competitors as they are in the same industry or have similar market objectives.

Latest Eaton stock news