Eaton had its Relative Strength (RS) Rating upgraded from 68 to 71 Thursday — a welcome improvement, but still shy of the 80 or better score you look for.
Can You Really Time The Stock Market?
IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
Over 100 years of market history reveals that the best-performing stocks tend to have an RS Rating of above 80 in the early stages of their moves. See if Eaton can continue to show renewed price strength and hit that benchmark.
Eaton broke out earlier, but has fallen back below the prior 382.92 entry from a cup with handle. If a stock you're tracking clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and entry price. Also keep in mind that the most recent consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Earnings growth dropped last quarter from 13% to 8%. But revenue moved higher, from 7% to 11%. Look for the next report on or around Nov. 4.
The company holds the No. 7 rank among its peers in the Electrical Power/Equipment industry group. nVent Electric, Vertiv Holdings and American Superconductor are among the top 5 highly rated stocks within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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