A Trove of Value
Back in June, we recommended Eaton (ETN) as a timely buy after the late-spring selloff. Investors had questioned the company's upcoming earnings outlook due to a weakening global macroeconomic climate and concerns regarding the upcoming acquisition of Cooper Industries (CBE).
The basis of our recommendation was that Eaton, with its shares trading below $40, was significantly oversold. At that point, the stock had traded for less than 9x earnings valuation, and at that price it had offered investors a compelling entry price point. Even now, with Eaton at above $46, we continue to think there is meaningful upside potential in this name and we are upbeat on the stock for the next six to 12 months....471 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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