$64.62 -0.04 (-0.06%)
12/3/2009 4:01 PM

Eaton Corp (ETN)

CAPS Rating: 4 out of 5

The Company is a manufacturer and engaged in design, manufacture, marketing and servicing of fluid power systems for industrial, mobile, and aircraft equipment; and electrical systems and components for power quality, distribution and control.

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Member Avatar bubbasuth (< 20) Submitted: 5/7/2009 9:32:20 AM : Outperform Start Price: $45.15 ETN Score: +23.20

A primary focus for all power electronics (i.e. motors used in fluid, motion, HVAC, etc.) is efficiency. Eaton has an ongoing positive presence in this field and will see expansion of demand under the Obama administration.

Vertical integration allows for higher margin operations, as well, and Eaton has a high profile in these complex systems. Again, for high efficiency systems, the market will tend to grow and ASPs will remain high because the alternative is low efficiency 'commodity' suppliers leveraging off of Chinese manufacturing.

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