NASDAQ · STOCK
Eaton Corporation
$415.36
52W $311.92 – $436.74
48/100
$161.22B
42.1
1.18
Is ETN Bullish or Bearish?
Mixed.
Innellis AI committee rates Eaton Corporation (ETN) Watch with a composite score of 48/100
, based on 6 analysts with 67% agreement.
Last updated July 31, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +11.97 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 — -8.03 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. News Analyst sees a compelling case — news sentiment is positive (+0.20 across 60 articles, 14d). Growth Analyst remains cautious — revenue declining -15.1% yoy -- this is not a growth story right now. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 20.8% shows genuine earnings power backing the valuation — Value
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- News sentiment is positive (+0.20 across 60 articles, 14d) — News
Bear Case
- P/E of 39.2 is moderate-to-rich — 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
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- MACD histogram negative -- bearish momentum — Technical
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 July 31, 2026
Overall Committee Score
48/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 95%
of 158 Industrials peers
Value Analyst
neutral
48
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 20.8% shows genuine earnings power backing the valuation
− P/E of 39.2 is moderate-to-rich
Growth Analyst
bearish
25
/ 100 · Moderate confidence
Growth story is weak, decelerating, or inconsistent
− Revenue declining -15.1% YoY -- this is not a growth story right now
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Macro Analyst
neutral
58
/ 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 60 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
Investment Thesis Evolution
Committee score weakened from 51.7 to 48.0.
- Conviction changed from contested to moderate.
- Committee agreement increased sharply from 43% to 67%.
- New bearish signals: 3 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 2 appeared.
- Bearish pressure eased: 5 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, Technical Analyst.
- Analyst(s) abstained: Risk Analyst.
Analyst-level changes:
- Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
- News Analyst: score 70->64 (-6); +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Risk Analyst abstained (was bullish at 70).
- Technical Analyst: stance bearish->neutral; score 38->48 (+10).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-07-30 to 2026-07-31 (1 day apart).
Technical Analysis
RSI (14)
59.1
Neutral
MACD Histogram
-0.913
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$367.77
Resistance
$434.67
Bollinger %B
0.78
Inside Bands
Price vs Moving Averages
EMA 9
$396.63
Above
EMA 21
$400.29
Above
EMA 50
$401.26
Above
EMA 200
$380.19
Above
Fundamental Analysis
Valuation
34
Growth
67
Profitability
1
Financial Health
55
Cash Flow
38
Valuation
P/E Ratio
42.1×
P/B Ratio
7.96×
PEG Ratio
-38.17
Dividend Yield
0.01%
52W High
$436.74
52W Low
$311.92
Quality & Growth
ROE
21.1%
ROA
9.9%
Gross Margin
35.9%
Operating Margin
17.7%
Revenue Growth YoY
—
Debt / Equity
1.05
AI Fundamental Assessment
P/E ratio of 42.1 (rich relative to a 15-40x range); Price-to-book of 8.0x; PEG ratio of -38.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.2%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.4%; Current ratio of 1.24 (tight short-term liquidity); Debt-to-equity of 1.05; Free cash flow margin of 1.0% (thin cash generation); Free cash flow per share is positive (12.74); 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
Get the Full ETN Analysis
Interactive charts · Live committee votes · Trade plan · Paper trading · AI Q&A
Open in Terminal →