Eaton's New Products Pushes it Ahead of Honeywell this Year
Eaton Corp hit a fresh 52-week high today (up 16% YTD) as the stock has been creeping up to its all time highs. The power management company has lagged competitors such as Honeywell, but now seems ready to roll given some new products and innovation. So far this year, the stock is slightly outperforming Honeywell (up 15% YTD), but hasn't seen highs like this for about 3 years of underperformance.
CEO, Sandy Cutler, was replaced by Craig Arnold in 2016 which may have spooked some investors to see a vet with multiple inventions leave the helm. Eaton has seen its revenue decline over the last 3 years although its earnings have increased over the same time period but stayed flat over the last year.
Today Eaton announced new air replacement circuit breakers which will extend the life of existing equipment by enhancing reliability and safety. The new breakers should also reduce the cost and maintenance and installation of power systems.
"Eaton provides a range of services and solutions to extend the life of aging power equipment." - Matt Badac, manager at Eaton
In the previous week, Eaton's latest innovation included a Bluetooth-enabled motion sensor which would allow users to control outdoor security lighting from a mobile app. Previously enterprises would need to climb ladders or get to hard-to-reach spaces to physically pull a switch to control lighting. The new security lights are safer and faster, and could help to save power by controlling them wirelessly.