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NYSE:ETN

Eaton Corp. (ETN)

401.88
-0.90 (0.22%)
as of Aug 31, 2026, 8:00:00 pm Market Open.
60 watching
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Investor Insights
star iconAug 31, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Eaton Corp. (ETN-N) has been highlighted by analysts for its strong focus on intelligent power management, particularly in the electrical sector, which is evident by their significant backlog. They are innovating using AI for product design and automating repetitive tasks. Despite potential concerns regarding the sustainability of data center spending, analysts believe the company's electrical division remains robust, especially with its involvement in data centers. The current price is attractive, particularly with a PE ratio in the high-20s, and there are strategic recommendations to stagger purchases at varying price points to optimize acquisition costs. Overall, while the company faces some macroeconomic uncertainty, its foundational strengths position it as a solid long-term hold.

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Consensus
Buy
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Valuation
Undervalued
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PAST TOP PICK

(Top Pick Jun 5/14, Down 6.18%) He lightened up on industrials in the portfolio. Analysts see a 20% upside on this one.

BUY

He has been waiting to buy it. It sold off because of end market exposure. 13 times next year’s earnings. It is reasonable and he would buy here. He is now nibbling away at it.

HOLD

They are into heavy trucks. It is a capital intensive space. He would stick with it. There are lots of good industrials in Canada, but in terms of US industrials it is a pretty good company.

TOP PICK

Play on non-residential construction in the US. Nice dividend. Electrical is a big component. Well positioned for a pickup in non-residential building.

PAST TOP PICK

(Top Pick Aug 28/13, Up 18.76%) Electrical infrastructure. Construction and utility. Outlook is very strong over the next couple of years.

TOP PICK

US ranks 143rd in terms of construction spending right now. That is not going to last and the number is going to go down. Did a sizable acquisition recently so now sales are 60% in the electrical business. Thinks there is a strong chance of getting mid-teens EPS growth for the next few years. Very reasonable multiples. Yield of 2.63%.

DON'T BUY
You want to be a little bit careful with the industrials unless they have a real tail wind. This one is very economically sensitive. It could be hit if people get concerned with the economy.
PAST TOP PICK
(A Top Pick June 18/08. Down 54%.)
BUY
Industrial. Would be a beneficiary of a US administration allowing companies to accelerate depreciation on capital expenditures. If trying to take advantage of a stimulus rally, this would be a good Buy.
COMMENT
At a valuation low going back to about 13 years. His model price is $81, a 15.8% differential. Thinks it will hold around here. You need economic growth in order for this company to move forward.
SELL
(Market Call Minute.) Unfortunately, machinery stocks are not doing well.
TOP PICK
Assembly line gear for trucks and autos but has diversified in the last 5 years. Much more balanced for every phase of the cycle. Also more exposed to infrastructure spending outside of the US. Trading at 10X 08 earnings and 8.5X 09 earnings. 2.5% dividend. Cheap stock.
TOP PICK
Trading at quite a low multiple because of the perception that it is a trucking supply company. Have done a great job of diversifying away from this over the last 5 years, mainly through acquisitions. 75% of their business is not related to the automotive side, but is an infrastructure play. Strong balance sheet.
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