Will the Expansion of These Two Industrial Giants Continue to Show Double-Digit YTD Growth?

Table of Contents

Key Points

  • General Electric (NYSE: GE) and Eaton Corporation (NYSE: ETN) are outperforming the market and their sector, showcasing strong growth this year.
  • General Electric’s recent earnings report (July 25th, 2023) revealed an EPS of $0.68, surpassing estimates by $0.22, and a revenue of $15.85 billion, marking an 18.6% YoY increase.
  • Eaton Corporation (NYSE: ETN) has surged 41% YTD and over 52% over the last year, with its chart still indicating potential further upside.
  • 5 stocks we like better than Eaton

Two industrial giants, General Electric (NYSE: GE) and Eaton Corporation (NYSE: ETN), are showing strong growth this year, outperforming the overall market and their competitors in the sector. Both companies have been growing steadily, and their stock charts suggest more positive trends ahead.

In a year where the Industrial Select Sector SPDR Fund (NYSE: XLI) has gone up around 8% and the overall market represented by the SPDR S&P 500 ETF Trust (NYSE: SPY) is up almost 15%, General Electric and Eaton Corporation stand out even more.

Having these industrial giants in your investment portfolio offers stability, dividend opportunities, and close ties to economic growth. Monitoring their performance could be wise as they continue to defy expectations and demonstrate why industrial stocks are worth considering.

General Electric’s shares have shown impressive performance, surging by 35.4% year-to-date and nearly 50% over the past year. Despite a modest dividend yield of 0.28%, the stock’s share price growth compensates for it. With a price-to-earnings ratio (P/E) of 13.46 and a current relative strength index (RSI) of 54.03, General Electric’s stock is reasonably valued and not excessively bought in the short term.

General Electric’s latest earnings report released on July 25th, 2023, exceeded analysts’ expectations. The company reported earnings per share of $0.68 for the quarter, surpassing estimates by $0.22. Additionally, General Electric’s quarterly revenue was $15.85 billion, outperforming the projected $14.76 billion.

Throughout the year, General Electric’s shares have maintained a consistent upward trend, with the 50-day Simple Moving Average (SMA) serving as an important support level. By successfully reclaiming its position within the upward trend and surpassing the short-term resistance level of $115, the stock has the potential to reach new all-time highs.

Eaton Corporation has emerged as a standout performer among large-cap industrial stocks, surging by 41% year-to-date and over 52% in the past year. While offering a moderate dividend yield of 1.55%, the company has a higher price-to-earnings ratio (P/E) of 32.69 compared to General Electric.

Eaton Corporation’s latest quarterly report, released on August 1, 2023, exceeded expectations. The company reported earnings per share (EPS) of $2.21 for the quarter, surpassing analysts’ average forecast of $2.11 by $0.10. Eaton Corporation also generated $5.87 billion in revenue during the quarter, marking a 12.5% increase compared to the same quarter in the previous year.

Technical analysis suggests continued upward momentum for Eaton Corporation. The stock is currently trading above all significant moving averages and consistently supports its steady uptrend. As long as the stock remains above the supporting upward trend line near $215, its upward momentum is likely to persist.

While Eaton currently has a “Hold” rating among analysts, there are five other stocks that top-rated analysts believe are better buys.

Must Read

Add Comment