Eaton Corp. stock trades under the ticker ETN & has shown recent bullishness that traders & investors should look further into for an possible entry once market volatility has subsided.
ETN stock closed at $163.69/share on 4/18/2023.
Eaton Corp. ETN Stock’s Technical Performance Broken Down
ETN Stock Price: $163.69
10 Day Moving Average: $160.47
50 Day Moving Average: $167.80
200 Day Moving Average: $152.50
RSI: 49.1
MACD: -1.625
Yesterday, ETN stock completed a bullish MACD crossover, gaining +0.39% on the day’s session.
Recent trading volumes have been relatively average compared to the year prior & their RSI is neutral.
Yesterday’s shooting star candlestick signals that investors & traders may want to tread with caution & eye ETN stock’s behavior at its support levels, so that they can plan an entry point for a position when volatility has simmered down across the market.
ETN stock has support at the $160.47 (10 day moving average), $160.23 & $157.90/share price levels, with resistance at the $164.52, $165.68 & $166.69/share price level.
Eaton Corp. ETN Stock As A Long-Term Investment
Long-term oriented investors will like ETN stock’s 25.86 P/E (ttm), but may find their 3.71 P/B (mrq) to be too high for their liking.
They recently reported 12.2% Quarterly Revenue Growth Y-o-Y, with 30.9% Quarterly Earnings Growth Y-o-Y.
Their balance sheet will require a more thorough examination, with $555M of Total Cash (mrq) & $9.24B of Total Debt (mrq).
ETN stock pays a 1.99% dividend, which appears to be sustainable in the long-run, as their payout ratio is 52.77%.
84.1% of ETN stock’s outstanding share float is owned by institutional investors.
Eaton Corp. ETN Stock As A Short-Term Trade Using Options
Traders with shorter time horizons can trade options to profit from price movements in ETN stock, while protecting their portfolios from volatility.
I am looking at the contracts with the 5/19 expiration date.
The $160, $140 & $155 call options are all in-the-money, listed from highest to lowest level of open interest.
The $165, $175 & $170 puts are also all in-the-money, with the former being more liquid than the latter strikes.
Tying It All Together
ETN stock has many interesting attributes that traders & investors will find appealing.
Investors will like their dividend yield & recent growth metrics, but may want to research further into their balance sheet structure before investing.
Traders will like their recent technical performance, but may wish their options were more liquid.
All-in-all, it is worth taking a closer look into ETN stock to see how it fits into your portfolio strategy when market volatility subsides.
*** I DO NOT OWN SHARES OR OPTIONS CONTRACT POSITIONS IN ETN STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***