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☆ We're hiking our price target on an industrial whose earnings benefit from AI data center boom
▼ + stars: | 2024-10-31 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

Electrical components and power systems company Eaton delivered mixed third-quarter results Thursday morning, and its stock paid the price. Eaton management raised its full-year guidance for both operating margin and earnings per share (EPS). However, we're increasing our price target to $375 per share from $350, implying over 9% upside from Wednesday's close. 2025 outlook Looking to next year, management didn't provide formal sales or earnings guidance, but they did provide growth assumptions for the company's key end markets. Industrial facilities (12% of sales), defense aerospace (6% of sales), and commercial and institutional (20% of sales) are expected to realize "modest growth."

Persons: Eaton, it's, we've, Oliveri Leonetti, Parker, wouldn't, Craig Arnold, Jefferies, Jim Cramer's, Jim Cramer, Jim Organizations: Revenue, LSEG, Boeing, Electrical, Aerospace, Hannifin, DuPont, Honeywell, CNBC, Eaton Corporation, NYSE Locations: Florida, Eaton, Americas, North America

☆ Eaton shares get dragged down in the market selloff despite a nice beat and raise
▼ + stars: | 2024-08-01 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

ETN YTD mountain Eaton YTD Shares of Eaton, which specializes in electrical components and power management systems, opened lower after a 6% gain in Wednesday's broader market rally. Data center energy demand drove record sales in Eaton's Electrical Americas and Electrical Global. Record sales were also recorded in Aerospace. Quarterly commentary While cash flow results were short of expectations, both operating cash flow (up 11% to $946 million) and free cash flow (up 10% to $759 million) represented second-quarter records. Operating cash flow is expected at $4.2 billion to $4.4 billion, and free cash flow is expected at $3.6 billion versus estimates of $4.4 billion operating cash flow and $3.56 billion free cash flow.

Persons: Eaton, Parker, Craig Arnold, Arnold, Jim Cramer's, Jim Cramer, Jim Organizations: Management, Revenue, LSEG, Electrical, Aerospace, Electrical Global, Hannifin, DuPont, Honeywell, DD, CNBC, Eaton Corporation, NYSE Locations: Eaton, North America

☆ We're making lots of trades: 2 sales and 1 buy — plus, we're recommending 1 other buy
▼ + stars: | 2024-07-25 | by ( Jeff Marks | ) www.cnbc.com time to read: +4 min

We're making a couple of small sales and a buy Thursday — trimming two positions currently benefiting from the broadening out trade and buying another on recent weakness. SWK YTD mountain Stanley Black & Decker YTD With earnings approaching and both stocks higher since their last reports, we're trimming these stocks just in case trends have not improved. On Stanley Black & Decker, we will realize a small loss of about 4% on stock purchased in the summer of 2023. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: Jim Cramer's, Stanley Black, Decker, Linde, Eaton, there's, Jim Cramer, Jim Organizations: Linde, LIN, Stanley, Federal, Broadcom, CNBC Locations: Eaton, ETN, North America

☆ We are hiking our price target on Eaton as demand for AI computing power heats up
▼ + stars: | 2024-04-30 | by ( Zev Fima | ) www.cnbc.com time to read: +14 min

Sales, earnings, segment profit margin, and organic growth all came in ahead of expectations, despite some minor misses in certain operating segments. In addition to the strong headline results, Electrical Americas, its biggest division, realized another record for sales, segment profit, and segment margins — driven partly by data center demand for AI computing power. Electrical Americas achieved yet another record for sales, segment profit, and segment margins with management noting strength in the data center market. Management expects a segment margin of 22.4% to 22.8%, ahead of the 22.4% midpoint estimate. Electrical Americas achieved yet another record for sales, segment profit, and segment margins with management noting strength in the data center market.

Persons: Eaton, Parker, Craig Arnold, Arnold, Jim Cramer's, Jim Cramer, Jim Organizations: Revenue, LSEG, Hannifin, DuPont, Honeywell, Electrical, Management, Aerospace, CNBC, Eaton Corporation, NYSE, NYSE Eaton Locations: North America, Electrical Americas, U.S, Eaton, Americas

☆ We're hiking our price targets on Nvidia and two other rallying portfolio stocks
▼ + stars: | 2024-03-22 | by ( Jeff Marks | ) www.cnbc.com time to read: +4 min

Nvidia price target increased to $1,050 NVDA YTD mountain Nvidia YTD Coming off a bullish GTC conference where Nvidia CEO Jensen Huang made the case that the artificial intelligence investment cycle is still in its early innings, we are increasing price target on the chip giant to $1,050 per share from $850. We're increasing our Eaton price target to $330 per share from $290 and reiterating our buy-equivalent 1 rating. As a sanity check, Bank of America increased its Eaton price target to $340 from $330 on Thursday following a meeting with management. Wells Fargo raised to $60 WFC YTD mountain Wells Fargo YTD Wells Fargo has made a string of new 52-week highs, and we think those gains can continue due to better-than-expected net interest income performance from higher interest rates, more buybacks, and ongoing cost discipline. We're increasing our Wells Fargo price target to $60 per share from $54 and reiterating our 2 rating.

Persons: Jensen Huang, Jensen, playbook, It's, Jim Cramer, Eaton, We're, Wells Fargo, Charlie Scharf, He's, Jim Cramer's, Jim, Josh Edelson Organizations: Nvidia, Blackwell, Bank of America, CNBC, Intelligence, SAP Center, Afp, Getty Locations: Eaton, Wells, Wells Fargo, ETN, San Jose , California

☆ Six industrial-focused stocks in the portfolio — and why we like each one of them
▼ + stars: | 2023-12-20 | by ( Jim Cramer | ) www.cnbc.com time to read: +7 min

CAT YTD mountain Caterpillar YTD Caterpillar shares have been on a wild ride this year — trending higher initially and then sinking into late spring; ripping higher to records and hitting another rough patch. DD YTD mountain DuPont YTD DuPont is levered to housing, which we all feel better about after last Wednesday's Fed meeting. ETN YTD mountain Eaton YTD Since our November meeting, we swapped out Emerson Electric for Eaton because we didn't trust Emerson after a one-two punch of a hostile takeover and a not-so-hot quarter. HON YTD mountain Honeywell YTD Honeywell recently bought a terrific industrial security business from Carrier for $4.95 billion. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: Ed Breen, Breen, that's, Emerson, Eaton, It's, Carrier, Vimal Kapur, Kapur —, Linde, We're, Linde's, I'm, Decker, Stanley Black, Stanley, SWK, Jim Cramer's, Jim Cramer, Jim Organizations: CNBC, Caterpillar, CAT, DuPont YTD DuPont, Fed, DuPont, Emerson, Broadcom, Honeywell YTD Honeywell, Carrier, Honeywell, LIN, Nasdaq, Linde, Exxon, ETN, Eaton Corporation, NYSE Locations: U.S, Eaton, Emerson

We're adding to our Eaton position after learning about data center news that makes us even more bullish about this power management company. Late Thursday, Blackstone and Digital Realty announced a huge joint venture to develop $7 billion worth of data centers across Europe and North America. News like this is fantastic for Eaton, whose largest end market by sales is Data Centers & Distributed IT, representing about 15% of sales. In the press release announcing the deal, Gray said, "Data centers are experiencing once-in-a-generation demand growth, driven by cloud adoption and the AI revolution." AI data centers require both higher power and higher power density relative to traditional data centers, resulting in three times the electric content.

Persons: Jim Cramer's, Eaton, Jon Gray, Blackstone, Gray, Jim Cramer, Jim, Brendan Mcdermid Organizations: ETN, Blackstone, Digital Realty, Centers, Data Center, Data, CNBC, New York Stock Exchange Locations: Eaton, Europe, North America, New York City, U.S

Following Monday's trade, Jim Cramer's Charitable Trust will no longer own a position in Emerson Electric. Even with the market overbought all last week, the S & P 500 squeezed out a gain of nearly 1% — its fifth straight weekly advance. For reference, any reading of 4% or more means the market is technically overbought (a reading of less than minus 4% means oversold). To help figure out the market's pulse, we like to refer to the Oscillator as our guidepost for buying or selling stocks. Whenever the market is overbought to this degree, our discipline is to look at areas to raise extra cash.

Persons: We're, Jim Cramer's, Eaton YTD, Eaton, Jim Cramer, Jim, Emerson Electric's, Timothy Aeppel Organizations: Emerson, CNBC Locations: Emerson, We'll, Marshalltown , Iowa

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