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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Eaton as such a stock due to the following factors:
- ETN has 15x the normal benchmarked social activity for this time of the day compared to its average of 0.61 mentions/day.
- ETN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $200.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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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 2.5%. ETN has a PE ratio of 19.2. Currently there are 11 analysts that rate Eaton a buy, no analysts rate it a sell, and 4 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 $37.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.68 and a short float of 1% with 1.77 days to cover. Shares are up 4.1% 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, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- ETN's revenue growth has slightly outpaced the industry average of 6.4%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- EATON CORP PLC has improved earnings per share by 16.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. 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 ($4.75 versus $3.90).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Electrical Equipment industry average, but is less than that of the S&P 500. The net income increased by 16.1% when compared to the same quarter one year prior, going from $378.00 million to $439.00 million.
- You can view the full Eaton Ratings Report.