U.S. markets open in 8 hours 55 minutes
  • S&P Futures

    4,160.50
    -23.00 (-0.55%)
     
  • Dow Futures

    34,572.00
    -96.00 (-0.28%)
     
  • Nasdaq Futures

    13,227.50
    -129.25 (-0.97%)
     
  • Russell 2000 Futures

    2,183.90
    -25.70 (-1.16%)
     
  • Crude Oil

    64.50
    -0.42 (-0.65%)
     
  • Gold

    1,836.20
    -1.40 (-0.08%)
     
  • Silver

    27.44
    -0.05 (-0.19%)
     
  • EUR/USD

    1.2149
    +0.0015 (+0.12%)
     
  • 10-Yr Bond

    1.6020
    0.0000 (0.00%)
     
  • Vix

    19.66
    +2.97 (+17.80%)
     
  • GBP/USD

    1.4132
    +0.0010 (+0.07%)
     
  • USD/JPY

    108.8640
    +0.0230 (+0.02%)
     
  • BTC-USD

    55,413.23
    -3,776.10 (-6.38%)
     
  • CMC Crypto 200

    1,461.86
    -99.44 (-6.37%)
     
  • FTSE 100

    7,123.68
    -6.03 (-0.08%)
     
  • Nikkei 225

    28,617.91
    -900.43 (-3.05%)
     

Eaton (ETN) Buys Tripp Lite, Expands Power Quality Business

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Eaton Corporation ETN announced that it has completed the acquisition of Chicago-based Tripp Lite, which will help the company to further expand the Power Quality Business in the Americas. The Tripp Lite acquisition will complement Eaton’s power quality portfolio that encompasses uninterruptible power supplies, DC power solutions, surge protective devices, switchgear, power distribution units, remote monitoring, meters, software, connectivity, enclosures and services.

Tripp Lite serves data centers, industrial, medical and communications markets. Eaton will further expand operations in this expanding market and provide clean, reliable, and energy-efficient power to critical applications, giving its clients continuous uptime to keep their business running without interruption.

Eaton’s strategic acquisitions allow it to foray into new markets and enhance revenue stream. Acquisitions made by the company contributed 2% to total fourth-quarter revenues. It is yet to close the acquisition of Cobham Missions Systems, which will expand operations and be accretive to earnings.

Organic Platform Boosts Operations

Eaton has been investing consistently in R&D programs to introduce new products, including power management solutions that will reduce energy consumption and carbon emissions.

It has laid out a 10-year plan that includes $3-billion investment in R&D programs, which will allow the company to create sustainable products over this period of time. The products supplied by Eaton have been deemed to be critical part of the global power infrastructure and are absolutely essential for power management.

Eaton supplies products to around 175 countries and most importantly, this provides stability to the company’s revenue generation ability, as the loss of a customer will not have any significant impact on revenues and margins.

Price Performance

In the past six months, shares of Eaton have gained 41.7% compared with the industry’s 38.7% rally.

Zacks Rank & Key Picks

Eaton currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include ABB Ltd ABB, Emerson Electric Co. EMR and Regal Beloit Corporation RBC, each currently having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABB, Emerson Electric and Regal Beloit’s long-term (three to five years) earnings growth is currently projected at 6.2%, 9.8%, and 10%, respectively.

The Zacks Consensus Estimate for 2021 earnings per share of ABB and Regal Beloit has moved up 3.4% and 7.5%, respectively, in the past 60 days. In the same time period, fiscal 2021 earnings estimates for Emerson Electric has moved up 8.4%.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Emerson Electric Co. (EMR) : Free Stock Analysis Report

Regal Beloit Corporation (RBC) : Free Stock Analysis Report

ABB Ltd (ABB) : Free Stock Analysis Report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research