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 or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader 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 $221.0 million.
- ETN traded 15,671 shares today in the pre-market hours as of 9:02 AM.
- ETN is up 2.3% 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 3.1%. ETN has a PE ratio of 18.9. Currently there are 8 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 3.5 million shares per day over the past 30 days. Eaton has a market cap of $30.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.66 and a short float of 0.9% with 1.22 days to cover. Shares are down 17.2% year-to-date as of the close of trading on Monday.
rates Eaton as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.5%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $633.00 million or 3.94% when compared to the same quarter last year. In addition, EATON CORP PLC has also modestly surpassed the industry average cash flow growth rate of -5.90%.
- The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- EATON CORP PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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 increased its bottom line by earning $3.90 versus $3.51 in the prior year. This year, the market expects an improvement in earnings ($4.54 versus $3.90).
- You can view the full Eaton Ratings Report.