Wall Street badly wants to believe in the narrative of a strong second
half recovery, and companies that don't toe that particular line are
seeing their stock prices suffer. While I didn't hear much that was
really very new in Eaton's (NYSE:ETN)
comments after the second quarter report, the Street took the shares
down almost 6% as management's comments took the high end of guidance
off the table. Although I do expect Eaton to reap good revenue growth
from the Cooper deal, as well as long-term cost benefits and lower
taxes, the shares are still no bargain unless you're willing to go with
pretty exceptional growth expectations.
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