Eaton (ETN) Showing Unusual Social Activity Today

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 Eaton ( ETN) 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 more that 20x the normal benchmarked social activity for this time of the day compared to its average of 0.68 mentions/day.
  • ETN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $175.4 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 2.7%. ETN has a PE ratio of 18.8. Currently there are 12 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 3.2 million shares per day over the past 30 days. Eaton has a market cap of $35.7 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.65 and a short float of 1.1% with 2.20 days to cover. Shares are down 2.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Eaton as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 27.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 117.39% and other important driving factors, this stock has surged by 27.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ETN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • EATON CORP PLC reported significant earnings per share improvement 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 ($4.80 versus $3.90).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 167.6% when compared to the same quarter one year prior, rising from $179.00 million to $479.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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