ETN is overdue for a shift in analyst attention, too
Every day for the next week, we're going to highlight one of Schaeffer's top seven picks for 2022. First up is a power management company that just scored a lucrative contract. To access the entirety of the 2022 report, click here.
Power management company Eaton Corporation PLC (NYSE:ETN), in partnership with the U.S. Army Engineer Research and Development Center (ERDC), recently proved that the grants the company received from the U.S. Department of Defense will help with the long-term resiliency of microgrids. Now sitting just below all-time highs, sharper pullbacks have been contained by ETN's 80-day moving average.
Despite the stock's 41% year-to-date gain, its Ultimate Indicator reading of 44 is not at extremes around 70, suggesting ETN is not overbought currently despite being close to record levels. What could help ETN hit those record levels are overdue price-target hikes. Of the 15 brokerages covering the stock, six still maintain lackluster "hold" ratings. Meanwhile, the consensus 12-month price target sits at $180.12, not far off the equity's current perch.
Chris Prybal is a Senior Market Strategist at Schaeffer's Investment Research. A lifelong student of the markets, he made his first trades before he even began attending the University of Cincinnati, where he studied finance and treasury management. Prybal's areas of expertise include option premium buying and selling, and his equity and market research have been cited by Barron's, MarketWatch, Forbes, Investopedia, and the Cincinnati Business Courier.