Eaton stock: buy or sell?

ETN stock price: $80.69 -0.64% At close on July 15th, 2019

Updated on:
July 15th, 2019

4

Eaton shares slightly fell -0.64% to $80.69 today.

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. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Eaton stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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 collected 8 ratings published for ETN stock in the last 30 days.

Is ETN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

Eaton ended today at $80.69 and slightly fell a lame -0.64%.

Eaton slightly fell a lame -0.64% and closed at $80.69. Since last June/4 when ETN stock price broke up the SMA200d line, it gained $5.31 (7.04%). Since SMA100d and SMA200d crossed up on May, ETN price climbed $1.94 per share (2.46%).

ETN stock chart (daily)

Weekly outlook

Shares of Eaton closed this week at $80.69 and decreased a lame -0.64%. For 3 weeks in a row, price slid and lost a -3.11%. By mid June ETN skyrocketed a dazzling 5.83% in just one week.

If you observe the weekly chart, price is in a simple uptrend, tested $78.24 level and now climbing back aiming its last top at $84.70. Far behind is the all-time high Eaton hit by mid September 2018 but price is just -7.36% below that top. Early June ETN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since SMA20w and SMA40w crossed up early May, ETN price slid a -2.55%.

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 $79.30

How much a stock will be priced tomorrow or next week is quite unpredictable 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 forecasts for ETN stock:
ETN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$80.00$79.30-1.0%
The price prediction for Eaton stock is $79.30, moving in a range between $88.00 and $73.00. In average, analysts' outlook on ETN price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Eaton presented its last earnings report, it depreciated an ugly -2.83%. 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 beatiful increase of 5.91% to $21,609.00 M USD. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) depreciated a -4.70% to 9.93%.

Eaton presents anual results 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. When comparing this TTM figures with the last reported annuality, we can review Eaton business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, remained constant a tight 0.25%. Regarding profit margin, Eaton stayed constant 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 million in revenues 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 raised 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 buy a company, it's 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$35.3 B$6.4 B$40.4 B$3.5 B
Total shares437.3 M141.1 M615.0 M42.8 M
Float shares422.0 M138.0 M611.0 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, July 15th, 2019
Open$81.22
Close$80.69
Day range$80.32 - $81.40
Previous close$81.21
Session gain-0.64%
Average true range$1.43
50d mov avg$79.78
100d mov avg$80.40
200d mov avg$76.72
Daily patternlt02a
Weekly pattern lb01a

Eaton performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Eaton performance to A.O Smith, Emerson Electric and Regal Beloit:
Stock3m6m12m
ETNEaton-4.47%14.26%7.62%
AOSA.O Smith-18.27%-1.65%-23.70%
EMREmerson Electric-8.20%7.48%-4.23%
RBCRegal Beloit-3.49%13.60%-0.58%

Eaton competitors

One check before investing in any stock is to review 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