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Will Eaton Give Shareholders a Jolt in 2013?

Dan Caplinger
January 11, 2013

As 2013 begins, now's a good time to look at the future prospects for the stocks you own. If you don't know where a company's headed in the next year and beyond, then it's impossible to make an informed decision about whether you should add the stock to your portfolio -- or sell it if you already own it.

Today, I'll look at Eaton (NYSE: ETN  ) . The electrical component maker had an electric performance in 2012 as it pulled off a massive buyout of equipment maker Cooper Industries. But will the company be able to integrate Cooper and justify its high price? Below, you'll learn more about Eaton's prospects for 2013.

Stats on Eaton



Average Stock Target Price


Full-Year 2012 EPS Estimate


Full-Year 2013 EPS Estimate


Full-Year 2012 Sales Growth Estimate


Full-Year 2013 Sales Growth Estimate


Forward P/E


Source: Yahoo Finance.

Will lightning strike for Eaton in 2013?
Analysts are cautiously optimistic about Eaton's prospects for the near future. Their target price on the stock is just 5% above where it trades currently, but even though the revenue figures largely reflect the Cooper buyout rather than organic growth, a modest boost to earnings would give Eaton a nice tailwind this year.

One promising sign that Eaton has already seen is that inventories of heavy machinery have started to fall, showing that buyers are finally making capital expenditures to boost their production capacity. That's good news not only for Caterpillar (NYSE: CAT