Not a good buy right now for an impatient buyer: price is stretched/overbought into resistance while near-term sentiment is turning defensive.
Strong fundamental demand signals (orders/backlog) keep the medium-term story intact, but the market is currently focused on 2026 guidance disappointment and high expectations.
Intellectia Proprietary Trading Signals: - AI Stock Picker: no signal on given stock today. - SwingMax: No signal on given stock recently.
Congress activity is a clear negative (sales only), which reduces conviction to chase at current levels.
Technical Analysis
Trend/Momentum: MACD histogram positive and expanding (bullish momentum), but RSI(6)=83.8 signals near-term overbought/extended conditions.
Levels: Post-market 369.98 is essentially at/just above R1 (369.77); upside resistance next at R2 ~381.45. A pullback risk rises after tagging resistance.
Support map: Pivot ~350.86 is the key “must-hold” area; below that S1 ~331.95.
Moving averages: converging MAs suggest trend is strong but could be entering a consolidation phase near highs rather than a clean low-risk breakout.
Options Data
Neutral
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Positioning vs flow: Open-interest put/call ~0.97 is roughly neutral, but put volume put/call ~2.59 shows strong near-term demand for puts (defensive/bearish short-term sentiment).
Volatility: IV30 ~35.15 vs HV ~24.22 implies elevated option pricing; IV percentile ~63 suggests options are not cheap—often consistent with uncertainty around guidance/expectations.
Liquidity/interest: Today’s volume ~5,293 is near the 10-day average; not a blow-off, but put-heavy skew matters for immediate direction.
Technical Summary
Sell
3
Buy
11
Positive Catalysts
Demand strength: Q4 2025 Electrical Americas orders +16% and backlog +31% supports continued multi-quarter revenue visibility.
Earnings delivery: Q4 EPS up ~17.7% YoY (to ~$3.33 reported in news) shows operational strength despite market reaction.
Data-center/AI exposure: Analysts (e.g., HSBC) highlight above-market growth prospects tied to power management needs for data centers.
Neutral/Negative Catalysts
increase the odds of a near-term pullback/consolidation.
Financial Performance
Latest quarter: 2025/Q4.
Growth: Revenue $7.055B (+13.06% YoY), Net Income $1.132B (+16.58% YoY), EPS $2.91 (+18.78% YoY) — solid growth trend.
Quality/mix: Gross margin 36.82%, down ~5.42% YoY, indicating profitability headwinds even as top-line and EPS grew.
Takeaway: Operationally strong quarter with clear demand indicators, but margin direction and forward guidance are the key swing factors for the stock right now.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent tone is mixed with notable target resets: JPMorgan cut PT to $406 (still Overweight); HSBC upgraded to Buy with $400; UBS downgraded to Neutral with $360; Barclays stays Equal Weight with $350; Bernstein kept Outperform but sharply cut to $295; Wells Fargo kept Equal Weight and cut to $340.
Trend summary: Ratings lean moderately positive (some Buys/Outperforms), but price targets have generally been reduced—signaling valuation sensitivity and less confidence in near-term upside surprises.
Wall Street pros: diversified power management + data center exposure + backlog conversion.
Wall Street cons: “high multiple” vulnerability, limited near-term estimate revision upside (per UBS), and 2026 guidance risk.
Wall Street analysts forecast ETN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETN is 401.36 USD with a low forecast of 340 USD and a high forecast of 440 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast ETN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETN is 401.36 USD with a low forecast of 340 USD and a high forecast of 440 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 354.670
Low
340
Averages
401.36
High
440
Current: 354.670
Low
340
Averages
401.36
High
440
Morgan Stanley
Overweight
maintain
$405 -> $425
AI Analysis
2026-02-04
New
Reason
Morgan Stanley
Price Target
$405 -> $425
AI Analysis
2026-02-04
New
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Eaton to $425 from $405 and keeps an Overweight rating on the shares. While bears have been able to "poke holes in the ETN story in recent months," there is no debate on demand with Q4 orders once again inflecting above expectations, the analyst says. While the demand for Eaton products has never been greater, the relative valuation for the equity has fallen to multi-year lows, adds the analyst, who feels more confident in the ability for the company to sustain high-single digit organic growth over a multi-year period.
RBC Capital
Outperform
maintain
$399 -> $407
2026-02-04
New
Reason
RBC Capital
Price Target
$399 -> $407
2026-02-04
New
maintain
Outperform
Reason
RBC Capital raised the firm's price target on Eaton to $407 from $399 and keeps an Outperform rating on the shares. There was much to like about Eaton's Q4 beat, despite the management' conservative 2026 guidance, the analyst tells investors in a research note. The underlying orders/backlog momentum suggests Eaton's 2026 guide has ample "beat-and-raise" potential, RBC adds.
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