Eaton Shares Jump on Barron’s Report

Eaton Corp plc (NYSE:ETN) is higher after Barron’s says the shares trade at a discount to the S&P 500 index and could rise 20% in the next year.

At 13.3 times projected earnings, ETN shares trade at a 21% discount to the S&P index and the company’s valuation should move toward its historical level over the next year, the Barron’s article said. ETN also has a blend of businesses that perform well during different parts of the economic cycle, with half of sales from outside the United States, the story noted.

On a consensus basis, Wall Street sell-side analysts have a mean target price of $76 for Eaton Corporation, PLC (NYSE:ETN). This number is based on the mean estimate from the 13 research firms that recently issued reports on the company.

According to analysts, Eaton Corporation, PLC (NYSE:ETN) is expected to report earnings per share for the current fiscal quarter of $1.01. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2014-12-31 of $1.27.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock is ranked 2.22 based on 13 sell-side broker recommendations. Of the 13 analyst estimates, the most bullish sees the stock reaching $85 within the next 12 months while the most bearish analyst sees the stock at $70 within the year.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $4.88. The high end estimate for this time frame is $5.16 with the low being $4.66. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 9.3%, based on 6 analysts providing projections.

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