Eaton stock: buy or sell?
September 20th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-3||Robert W. Baird||Outperform||Neutral|
|2019-7-31||Morgan Stanley||n/a||Equal Weight|
|2019-4-4||Bank of America||Neutral||Buy|
|2019-4-4||Bank of America||Buy||Neutral|
|2019-3-4||Wells Fargo & Co||n/a||Buy|
|2019-1-8||Wolfe Research||Outperform||Market Perform|
|2019-1-3||Credit Suisse Group||n/a||Outperform|
Eaton stock analysis
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.
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%).
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 $81.50Nobody 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-3||Robert W. Baird||Downgrades||$89.00||$82.00||-7.9%|
|2019-7-31||Morgan Stanley||Raises Target||$88.00||$90.00||2.3%|
|2019-4-4||Bank of America||Downgrades||n/a||$88.00||-|
|2019-1-3||Credit Suisse Group||Reiterates||$85.00||$80.00||-5.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|2013||$22,050 M||-||$1,860 M8.4%||-|
|2014||$22,552 M||2.28%||$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 M||3.33%||$2,985 M14.6%||55.31%|
|2018||$21,609 M||5.91%||$2,145 M9.9%||-28.14%|
|TTM||$21,663 M||0.25%||$2,179 M10.1%||1.59%|
Quarterly financial resultsEaton 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%.
|2017-Q2||$5,130 M||-||$515 M10.0%||-|
|2017-Q3||$5,211 M||1.58%||$1,399 M26.8%||171.65%|
|2017-Q4||$5,213 M||0.04%||$634 M12.2%||-54.68%|
|2018-Q1||$5,251 M||0.73%||$488 M9.3%||-23.03%|
|2018-Q2||$5,487 M||4.49%||$610 M11.1%||25.00%|
|2018-Q3||$5,412 M||-1.37%||$416 M7.7%||-31.80%|
|2018-Q4||$5,459 M||0.87%||$631 M11.6%||51.68%|
|2019-Q1||$5,305 M||-2.82%||$522 M9.8%||-17.27%|
Eaton ownershipWhen 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:
|Market cap||$35.1 B||$6.7 B||$40.1 B||$3.1 B|
|Total shares||420.0 M||138.4 M||615.1 M||41.9 M|
|Float shares||418.6 M||135.1 M||610.8 M||41.5 M|
|- Institutional holdings (%)||80.4%||98.7%||74.2%||95.7%|
|- Insider holdings (%)||0.2%||0.9%||0.6%||1.3%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$83.49 - $85.18|
|Average true range||$1.91|
|50d mov avg||$80.58|
|100d mov avg||$79.84|
|200d mov avg||$77.37|
Eaton performanceStocks 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:
Eaton competitorsOne 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
- Seeking AlphaEaton Keeping Its Ducks In A Row And Still UndervaluedMay 1, 2019
- Seeking AlphaEaton Makes Its Case For A Stronger Full-Cycle PerformanceMarch 19, 2019
- Seeking AlphaEaton Hitting Its Marks, But Still A Controversial NameFebruary 11, 2019
- Seeking AlphaEaton's Challenges Look More Sector/Sentiment-SpecificNovember 15, 2018
- Seeking AlphaEaton Outperforming And Still Undervalued, But Mind The CycleAugust 6, 2018