Eaton Corp. (ETN-N)

Exciting. Electrical segment key to data centres. Concerns that whole industry may have jumped the gun, and that technology will be obsolete by the time centres are up and running. He's encouraged by its low valuation.

He did well owning this, but sold around 33x PE, too rich. It went higher on momentum, but has sold hard lately. He's looking at it now. A very good company in data centre expansion. Lots of growth, but would buy at a lower PE.

She trimmed GE Vernoa to buy more Eaton and Quanta Services, and both just reported blow-out quarters. Quanta: EBITDA +40%, backlog +14%. Eaton: data centres +45%, pipeline +65%, and backlog 3x more than normal. Good valuations.

Can benefit from electrification and selling transmitters and generators. Pulled back, but still not cheap; if that continues, might be worth dipping your toe in.

Sometimes a report doesn't meet expectations, despite being a good quarter. This happened to Eaton.

He added shares during Monday's sharp sell-off. They report Friday. It's a fine, long-term story

Electrical components are driving the business. Has done very well. The hype is from the electrical side and AI/data centres. Sold it. Feels it is stretched on the valuation side. Trading at 33x earnings. Expectations for next year and the following year are in the 10% range. Not enough growth versus current price. 

Sells things needed to build power capacity. Future is very good, especially with infrastructure spends around the power grid. Continues to grow double digits.

She bought more. They have 30% market share in their electrical business, which holds exciting growth. So many drivers: utilities needing upgrading, onshoring of supply chains, data centres.

Will continue to own. Electrical components demand demand will remain strong. Ability to generate profits also very strong. Re-shoring of manufacturing will continue, and will also generate profits. 

Great stock, but trades erratically. Would recommend buying on weakness. 

Electrification equipment. Has done tremendously well. Has become quite expensive. Look at on pullbacks.

Recently sold on price exhaustion. Outgrew growth of earnings. Yes, sees continued growth of earnings, but the stock price more than compensated him for that growth. This is where valuation is so terribly important in your analysis.

Just bought it, because they're increasing their backlog a lot as orders rose from 2-7% in the last quarter. Are benefitting from the electrical side and power quality plus they have aviation/aerospace exposure, industrial areas she loves. She just started with a partial position.

Done very well. Trades at 26x earnings, growing in low teens for both EPS and cashflow. Expects just north of $10 EPS for fiscal 2024. Likes it, but getting to the high side. He'd still buy, but if it grew another 5-10%, he'd look to exit.