Eaton stock: buy or sell
Mar 2nd, 2021
Eaton stock brief
- Eaton skyrocketed a 3.11% after reaching all-time highs on Monday
- The price is currently over the upper Bollinger band, which often indicates a short-term correction
- On February 22 broke out above its latest top at $130.00
- Price is drawing a scaled uptrend since March 2020 with higher tops and higher bottoms. Up to date, the uptrend marked a 141.31% gain since the beginning of this rally. On February 22 Eaton broke out above $130.00 giving an entry point
- Eaton Corporation plc operates as a power management company worldwide.
Should I buy Eaton stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick 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
Is $ETN stock a buy?
In the current situation of Eaton there is just one buy setup eligible:
Uptrend buy setup
Eaton stock continues to trend higher since in March 2020 and marked a gorgeous 141.31% gain. Price marked a pull back in this uptrend at $114.01 last January, and since then it bounced up a 17.74%. Price just broke out above the buy point at $130.00, but it's still eligible. If price climbs beyond $136.50, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $117.00
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$130.00||$117.00||10.00%|
Should I sell Eaton stock?
When you own a stock with some profit, it's really hard to decide the best moment to sell and get your profits. Trading strategies prevent us from making impetuous decisions based on our personal sentiments or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies are not intended for selling short $ETN stock
As a golden rule, you should never mantain an open trade that leads to losses greater than those expected upon purchase. The moment to sell your stock must always be determined by the stop-loss (automatic or manual)
Is it time to sell Eaton stock?
Currently, Eaton stock doesn't match any of our preferred sell setups, so if you own Eaton shares and your operation is in profit probably is not time to sell now
In the last month, 5 brokerage ratings were published for Eaton. General sentiment is bullish, with 3 out of 5 posting positive outlooks
|Feb 2nd, 2021|
|Robert W. Baird||Neutral → Neutral|
|Feb 3rd, 2021|
|Credit Suisse Group||Buy|
|Royal Bank of Canada|
|Feb 16th, 2021|
|HSBC|| Neutral → |
Eaton stock analysis
Since in March 2020, Eaton has been drawing an uptrend that by now marked an amazing 141.31%. The price shows higher peaks and higher troughs, and along the way provided some buy points for those who wanted to invest. Latest low was last January, when price bounced at $114.01. On February 22, Eaton broke out above its last top ($130.00) offering a good buying opportunity
$ETN at Highs
On Monday, Eaton marked new all-time highs (ATH) again at $135.84
Supports and resistances
Price is at all-time highs and there are not upper resistances.
The current supports are:
Price levels both above or below the Bollinger Bands mean that the price has followed a strong trend that has led to extreme highs or lows. In this case, the price is above the upper band, meaning a short-term correction (at least) until it is under the band
Relative strength index
Crossed over the 70 level Monday, with a value of 70.13. Climbing above the overbought zone is not a sell signal, as stocks can rally during several weeks being in the overbought zone
Eaton stock price history
Eaton started trading priced at an adjusted price1 of $0.00 on Jun 1972. Since then, ETN stock surged by -, with an average of 0.00% per year. An investment of $1,000USD on the IPO would be valued $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Eaton stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis predicting how a particular stock will performance in the future.
The following table shows the price forecasts released by financial institutions in the last 30 days. Again, these targets are not direct recommendations for small traders and must not be trusted blindly.
There are 5 price predictions released for Eaton that average $130.40. Eaton closed at $134.24 on Monday, so the target price is forecasting a drop by 2.86%.
|Brokerage firm||Price target|
|Feb 2nd, 2021|
|Robert W. Baird||$119.00 → $120.00|
|Feb 3rd, 2021|
|Credit Suisse Group||$130.00 → $140.00|
|Oppenheimer||$118.00 → $133.00|
|Royal Bank of Canada||$112.00 → $119.00|
|Feb 16th, 2021|
|HSBC||$103.00 → $140.00|
Earnings and financials
Eaton Corporation plc ($ETN) came out with quarterly earnings of $1.28 per share in early February, slightly beating the Wall St consensus estimate of $1.20 per share. This quarterly report means an earnings surprise of 6.67%. On the contrary, reported sales were $4.7 billion, in line with the market estimates.Compared to the same quarter one year ago, EPS was $1.37, so current EPS is a drop of -6.57%. Looking at revenue, figures went down a -10.52% compared to $52.4B year over year.
Eaton ($ETN) will host the earnings call late next April. Analysts predict of $1.22, that is a 4.69% less than Q4.
Important note:The viewpoints expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have an understanding of the particular conditions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for general educational purposes only
|Monday, March 1st, 2021|
|Day range||$131.3 - $135.84|
|Average true range||$3.41|
|50d mov avg||$122.55|
|100d mov avg||$117.41|
|200d mov avg||$105.05|
|Earnings date||April 29th, 2021|