By Peet Serfontein & Khumbulani Kunene
Eaton is an intelligent power management company that makes products for the data centre, utility, industrial, commercial, machine building, residential, aerospace, and mobility markets.
Founded in 1911, Eaton operates in 35 countries and sells products to customers in more than 160 countries. The company provides energy-efficient solutions that help customers manage electrical, hydraulic and mechanical power more effectively, safely, and sustainably.
Technically, a price in wave b of an Elliott Wave pattern presents a promising investment opportunity (see notations on the main chart). Within a bullish Elliott Wave setup, this can be regarded as a positive indicator as it represents a corrective phase before the final Wave 5 advance. This consolidation allows the market to gather momentum and resolve any short-term uncertainty, setting the stage for a stronger upward move.
The weekly price swing heatmap also supports our bull case. The heatmap reveals alternating bullish and bearish swings over the past few months, indicating a degree of volatility and uncertainty. From mid-April to mid-June 2025, ETN has demonstrated a bullish bias, with four out of six weekly swings turning positive (green), suggesting renewed upward momentum following a brief consolidation period.
Upside price momentum per the MACD histogram, as well as the recent sideways trajectory of the on-balance volume (OBV) indicator, also supports our bullish view.
| Share Information | |
|---|---|
| Share Code | ETN US |
| Industry | Capital Goods |
| Market Capital (USD) | 131 billion |
| One Year Total Return | 3.61% |
| Return Year-to-Date | 1.63% |
| Current Price (USD) | 334.86 |
| 52 Week High (USD) | 379.99 |
| 52 Week Low (USD) | 231.85 |
| Financial Year End | December |
| A price bouncing off its 200-day simple moving average (SMA) supports a bull case for the stock. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 10.80 | 12.00 | 13.52 | 15.01 |
| Growth (%) | 15.8 | 12.66 | 11.05 | |
| Dividend Per Share (USD) | 3.76 | 4.07 | 4.36 | 4.71 |
| Growth (%) | 8.35 | 6.97 | 8.01 | |
| Forward PE (times) | 26.35 | 23.56 | 22.31 | |
| Forward Dividend Yield (%) | 1.22 | 1.30 | 1.41 | |
| Medium -term growth prospects remain positive, with momentum expected to persist over the next few financial periods. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | PYPL US - Stop Loss (Exit the trade) |
PANW US - Buy (Continue to hold) |
SW US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 74.76 | 173.55 | 39.56 |
| Current | 68.57 | 199.78 | 42.39 |
| Movement | -8.3% | +15.1% | +7.2% |
| The trade reached our stop-loss level, and we closed the trade. |
A trough in the stock's price continues to attract attention. Remains above its 200-day SMA. Upside price momentum is supportive.
Our profit target remains at $228 with a trailing stop-loss at $181. Exit the trade around 25 June 2025. |
A trough in the Elliott wave theory remains of interest. Remains below its 200-day SMA. Fading downside price momentum is supportive.
Our profit target remains at $49 with a trailing stop-loss at $36. Exit the trade around 20 August 2025. |
| Share Name and Position | CTAS - Buy (Continue to hold) |
MET US - Buy (Continue to hold) |
ABBV US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 205.84 | 79.32 | 185.72 |
| Current | 220.42 | 78.55 | 185.49 |
| Movement | +7.1% | -0.01% | -0.1% |
|
A bullish pennant pattern continues to attract attention. Remains above its 200-day SMA. Fading upside price momentum is a concern.
Our profit target remains at $241 with a trailing stop-loss at $206. Exit the trade by 25 June 2025. |
A price in a developing rising wedge pattern remains of interest. Remains just below its 200-day SMA. Muted upside price momentum is supportive.
Our profit target remains at $89 with a trailing stop-loss at $74. Exit the trade around 29 August 2025. |
A price in an upward sloping inclining channel pattern remains of interest. Continues to test its 200-day SMA. The start of downside price momentum is a concern.
Our profit target remains at $216 with a trailing stop-loss at $174. Exit the trade around 20 August 2025. |
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