Valued at a market cap of $128.8 billion, Eaton Corporation plc (ETN) is a power management company and a global technology leader in electrical components and systems. The Dublin, Ireland-based company’s current reportable segments are Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility. 

ETN shares have struggled to keep up with the broader market over the past 52 weeks. ETN has declined 3.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 11.5%. Moreover, the stock is down 1.5% on a YTD basis, compared to SPX’s marginal rise during the same time frame.

Zooming in further, Eaton has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 12.9% return over the past 52 weeks and a 7.9% gain on a YTD basis. 

Eaton’s shares dropped marginally on May 2 after reporting Q1 2025, with revenue rising 7% year-over-year to $6.38 billion and adjusted EPS increasing 13% to $2.72. The company achieved a record segment margin of 23.9%, driven by robust growth in its Electrical Americas, Aerospace, and Electrical Global segments, while its Vehicle segment saw a decline. 

For the current fiscal year, ending in December, analysts expect Eaton's EPS to grow 11.1% year over year to $12. The company’s earnings surprise history is promising. It surpassed the Wall Street estimates in each of the last four quarters.

Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 13 “Strong Buy,” two “Moderate Buy,” and six “Hold” ratings.

This configuration is more bullish than three months ago, when it had 12 “Strong Buy” suggestions.

On May 15, Exane BNP Paribas initiated coverage of Eaton with an "Outperform" rating, signaling a positive market outlook. Analyst Andrew Buscaglia set a price target of $380, indicating expectations that Eaton will deliver returns above the broader market. 

The mean price target of $347.57 represents a 6.3% premium from Eaton’s current price levels, and the Street-high price target of $431 suggests an upside potential of 31.9%.