ETN · NASDAQ · STOCK
Eaton Corporation
$449.97
52W $311.92 – $457.78
53/100
$174.22B
45.5
1.18
Is ETN Bullish or Bearish?
Mixed.
Innellis AI committee rates Eaton Corporation (ETN) Watch with a composite score of 53/100
, based on 6 analysts with 50% agreement.
Last updated August 09, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +6.71 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -13.29 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Risk Analyst remains cautious — bollinger bandwidth of 22.7% signals elevated volatility. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 19.6% shows genuine earnings power backing the valuation — Value
- 3 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
- P/E of 45.5 is expensive by classic value standards — Value
- Price-to-book of 6.4x prices in significant intangible value — Value
- Revenue declining -15.1% YoY -- this is not a growth story right now — Growth
- EPS declining -1.1% YoY despite any revenue growth — Growth
- RSI at 70 is in overbought territory — Technical
- Bollinger bandwidth of 22.7% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 09, 2026
Overall Committee Score
53/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 88%
of 158 Industrials peers
Value Analyst
neutral
42
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 19.6% shows genuine earnings power backing the valuation
− P/E of 45.5 is expensive by classic value standards
Growth Analyst
neutral
50
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ 3 consecutive earnings beats -- consistent execution
− Revenue declining -15.1% YoY -- this is not a growth story right now
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− RSI at 70 is in overbought territory
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 22.7% signals elevated volatility
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 53.3 to 53.3.
Comparing 2026-08-08 to 2026-08-09 (1 day apart).
Technical Analysis
RSI (14)
70.5
Overbought
MACD Histogram
6.161
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Bollinger %B
0.89
Inside Bands
Price vs Moving Averages
EMA 9
$429.96
Above
EMA 21
$417.49
Above
EMA 50
$409.27
Above
EMA 200
$383.36
Above
Fundamental Analysis
Valuation
33
Growth
67
Profitability
76
Financial Health
55
Cash Flow
70
Valuation
P/E Ratio
45.5×
P/B Ratio
8.61×
PEG Ratio
-41.24
Dividend Yield
0.97%
52W High
$457.78
52W Low
$311.92
Quality & Growth
ROE
2105.0%
ROA
991.2%
Gross Margin
3590.3%
Operating Margin
1767.9%
Revenue Growth YoY
—
Debt / Equity
1.05
AI Fundamental Assessment
P/E ratio of 45.5 (rich relative to a 15-40x range); Price-to-book of 8.6x; PEG ratio of -41.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 21.1%; Return on assets of 9.9%; Net margin of 12.8%; Gross margin of 35.9%; Current ratio of 1.24 (tight short-term liquidity); Debt-to-equity of 1.05; Free cash flow per share is positive (11.59); Most recent quarter beat estimates by 1.6%; 3 consecutive earnings beats; EPS growth accelerating (-15.6% -> +12.1% QoQ); Average YoY EPS growth of 6.8%; Analyst estimates falling over recent quarters
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