5-Star Stocks Poised to Pop: Eaton

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified power management company Eaton (NYS: ETN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Eaton's business and see what CAPS investors are saying about the stock right now.

Eaton facts

Headquarters (founded)

Cleveland (1916)

Market Cap

$13.1 billion

Industry

Industrial machinery

Trailing-12-Month Revenue

$16.2 billion

Management

Chairman/CEO Alexander Cutler
Vice Chairman/CFO Richard Fearon

Return on Equity (average, past 3 years)

13.8%

Cash/Debt

$811.0 million / $3.8 billion

Dividend Yield

3.9%

Competitors

ITT
Johnson Controls
Parker Hannifin


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 885 members who have rated Eaton believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, All-Star ir4getful, tapped Eaton as a particularly solid bargain opportunity:

Another value pick. Company closely tied to overall economy which should eventually improve. I also like their position in energy management and innovations (in home Nat Gas fueling stations, for example). Pay solid and growing dividend while I wait.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Eaton may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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