Eaton stock: buy or sell?

ETN stock price: $95.68 0.91% At close on January 17th, 2020

Updated on:
January 17th, 2020

5

After reaching all time highs yesterday, Eaton inched 0.91% yesterday to $95.68.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups work for Eaton stock right now:

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

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 detected 7 ratings published for ETN stock in the last month.

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

Eaton stock analysis

Daily outlook

Eaton ended yesterday at $95.68 after topping to a new all time high ($95.95) and inched a slightly fine 0.91%.

After climbing to all-time highs several times in past weeks, Eaton inched 0.91% to $95.68. On October ETN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA50d and SMA100d crossed up on September, ETN price climbed $13.10 per share (15.86%).

ETN stock chart (daily)

Weekly outlook

Eaton shares touched new all time highs again this week, setting highs to $95.95. Shares ended at $95.68 and appreciated 0.74% during the week.

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 . Late August 2019 ETN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since early May 2019 when SMA20w and SMA40w crossed up, ETN price gained $14.26 per share (17.51%).

ETN stock chart (weekly)

Eaton stock price history

Eaton stock historical price chart

ETN stock reached all-time highs yesterday with a price of $95.95.

Eaton stock price target is $84.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 4 price predictions for Eaton stock:
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-
(in average)$88.50$84.00-5.0%
Moving in a range from $90.00 and $76.00, the price forecast for Eaton stock is $84.00. In average, analysts' outlook on ETN price forecast is negative, downsizing the target by a -5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Eaton presented its last earnings report, it . 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 sales report draw a decent gain of 5.91% to $21,609.00 million dollars. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) decreased a -4.70% to 9.93%.

Eaton fiscal year ends in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Eaton TTM sales up to March 2019 were $21,663.00 and income $2,179.00 M USD. If we compare 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 stable a tight 0.25%. Aligned with this, profit margin (net income/sales) stayed constant 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 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 sales to same quarter last year, Eaton sales marked a tiny growth and grew 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 a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Eaton, 0.22% 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 companies:

ETN
Market cap$40.2 B
Total shares420.0 M
Float shares412.1 M
  - Institutional holdings (%)82.8%
  - Insider holdings (%)0.2%
Shares in short selling0.0%

Eaton summary

Friday, January 17th, 2020
Open$94.79
Close$95.68
Day range$94.62 - $95.95
Previous close$94.82
Session gain0.91%
Average true range$1.14
50d mov avg$93.22
100d mov avg$87.87
200d mov avg$83.46
Daily pattern
Weekly pattern lt06a

Eaton performance

To better understand Eaton performance you must compare its gains with other related stocks in same sector or industry. For Eaton, the comparison is made against .
Stock3m6m12m
ETNEaton16.83%21.84%37.77%

Eaton competitors

Unfortunately, we could not find any public company that could be defined as Eaton competitor. This doesn't mean Eaton does not have any competitor in the market, it's just we could not detected it.

    Latest Eaton stock news