Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Eaton

(

ETN

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Eaton as such a stock due to the following factors:

  • ETN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.6 million.
  • ETN traded 29,817 shares today in the pre-market hours as of 9:29 AM.
  • ETN is down 2.6% today from yesterday's close.

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More details on ETN:

Eaton Corporation plc operates as a power management company worldwide. The stock currently has a dividend yield of 3.6%. ETN has a PE ratio of 16. Currently there are 9 analysts that rate Eaton a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Eaton has been 2.5 million shares per day over the past 30 days. Eaton has a market cap of $28.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.55 and a short float of 1% with 1.52 days to cover. Shares are down 10.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eaton as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 541.66% to $77.00 million when compared to the same quarter last year. In addition, EATON CORP PLC has also vastly surpassed the industry average cash flow growth rate of -8.97%.
  • 35.54% is the gross profit margin for EATON CORP PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.92% trails the industry average.
  • EATON CORP PLC has improved earnings per share by 7.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EATON CORP PLC reported lower earnings of $3.77 versus $3.90 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $3.77).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electrical Equipment industry average. The net income increased by 6.2% when compared to the same quarter one year prior, going from $439.00 million to $466.00 million.

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