Eaton Story

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ETN -- USA Stock  

USD 98.78  1.40  1.44%

It seems Eaton PLC will continue to recover much faster as its share price surged up 3.80% today. The company's current daily volatility is 2.47 percent, with a beta of 1.22 and an alpha of 0.08 over DOW. As many investors are getting excited about climate change, it is fair to outline Eaton PLC. We will analyze why it could be a much better year for Eaton PLC shareholders.
Published over a month ago
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Breaking down Eaton PLC (NYSE:ETN) volatility slide
Eaton PLC has roughly 419 M in cash with 3.22 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.05. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Eaton PLC has an asset utilization ratio of 67.33 percent. This suggests that the company is making $0.67 for each dollar of assets. An increasing asset utilization means that Eaton PLC is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Eaton PLC, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Eaton PLC along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Eaton PLC's Liquidity

Eaton PLC financial leverage refers to using borrowed capital as a funding source to finance Eaton PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eaton PLC financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Eaton PLC's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Eaton PLC, but it might be worth checking our own buy vs. sell analysis

Eaton PLC Correlation with Peers

Investors in Eaton can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Eaton PLC. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Eaton PLC and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Eaton is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Eaton for more details

Exercise or conversion by Richard Fearon of 40550 shares of Eaton PLC subject to Rule 16b-3

Legal trades by Eaton PLC insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Eaton insider trading alert for exercise of stock option by Richard Fearon, the corporate stakeholder, on 25th of August 2020. This event was filed by Eaton Corp Plc with SEC on 2020-08-25. Statement of changes in beneficial ownership - SEC Form 4. Richard Fearon currently serves as vice chairman of the board, chief financial and planning officer of Eaton PLC [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Eaton PLC appears to be very steady, given 1 month investment horizon. Eaton PLC secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the company had 0.11% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Eaton PLC, which you can use to evaluate future volatility of the firm. Please utilize Eaton PLC Downside Deviation of 2.64, coefficient of variation of 869.34, and Mean Deviation of 1.86 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Eaton PLC thrive

Expected Short fall just dropped to -1.88, may entail upcoming price depreciation. Eaton PLC currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.08. However, we do advice investors to further question Eaton PLC expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Eaton PLC Investment

Whereas some firms under the specialty industrial machinery industry are still a bit expensive, Eaton PLC may offer a potential longer-term growth to institutional investors. To conclude, as of the 29th of July 2020, our research shows that Eaton PLC is a rather very steady investment opportunity with a below average chance of financial distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our present 30 days buy-hold-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Eaton PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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