Eaton stock: buy or sell?

ETN stock price: $78.46 -0.37% At close on May 20th, 2019

Updated on:
May 20th, 2019

4

Shares of Eaton closed today at $78.46 and depreciated a disappointing -0.37%.

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. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Just 1 of our buy setups matches with Eaton stock now:

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MAYes

Is Eaton stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 7 ratings published for ETN stock in the last month.

The general sentiment of these ratings is bullish for ETN stock, with 4 positive ratings.
Is ETN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

Eaton ended today at $78.46 and depreciated a disappointing -0.37%.

Shares of Eaton ended today at $78.46 and depreciated a disappointing -0.37%. Since today when SMA100d and SMA200d crossed up, ETN price slipped $-0.29 per share (-0.37%). Since price and SMA200d lines crossed up on February, ETN climbed $4.14 (5.57%).

ETN stock chart (daily)

Weekly outlook

Shares of Eaton ended this week at $78.46 and stayed steady a disappointing -0.37%. This was the fifth red week in a row, sliding in full a -7.23%.

In a weekly time frame, Eaton stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, ETN might consolidate in a flat-base, waiting to break out over or down under . Far behind is the all-time high Eaton recorded by mid September 2018 but price is just -9.92% below that top. Since early May when SMA20w and SMA40w crossed up, ETN price slipped $-4.34 per share (-5.24%). Since mid February when ETN stock price broke up the SMA40w line, it gained $3.95 (5.30%).

ETN stock chart (weekly)

Eaton stock price history

Eaton stock historical price chart

ETN stock reached all-time highs on September with a price of $87.10.

Eaton stock price target is $80.30

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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 3 price predictions for Eaton stock published in the last month:
ETN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$80.00$80.300.0%
Moving in a range from $88.00 and $73.00, the price prediction for ETN stock is $80.30. In average, analysts' outlook on ETN price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April 29th, when Eaton published its last earnings report, it declined a tragic -5.52%. Unfortunately, reported EPS is not yet available in our database.
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 turnover report draw a decent increase of 5.91% to $21,609.00 million USD. In contrast, its income margin (compared to sales) decreased to 9.93%, that is $2,145.00 million.

To have an updated picture 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 esteem Eaton business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, remained steady a tight 0.25%. Regarding profit margin, Eaton stayed stable 0.13% to 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 reported $5,305.00 M in sales for 2019-Q1, a -2.82% decline compared to previous quarter. Reported quarter income marked $522.00 million with a profit margin of 9.84%. Profit margin declined 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 tiny growth and stepped up 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 have a look 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.

The following table compares ownership indicators for other stocks related to Eaton:

ETNAOSEMRRBC
Market cap$33.2 B$6.2 B$39.8 B$3.2 B
Total shares423.1 M141.1 M614.6 M42.8 M
Float shares422.0 M138.1 M610.8 M42.4 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

Monday, May 20th, 2019
Open$78.12
Close$78.46
Day range$77.92 - $78.82
Previous close$78.75
Session gain-0.37%
Average true range$1.59
50d mov avg$81.31
100d mov avg$77.19
200d mov avg$77.05
Daily patternlt03a
Weekly pattern lt06a

Eaton performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Eaton to A.O Smith, Emerson Electric and Regal Beloit:
Stock3m6m12m
ETNEaton-1.17%7.77%3.80%
AOSA.O Smith-14.76%-3.88%-29.99%
EMREmerson Electric-4.40%-5.51%-8.81%
RBCRegal Beloit-9.82%-3.12%-4.67%

Eaton competitors

One check before trading 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