Eaton Lacks Sizzle, But The Valuation Is Interesting

It's hard to work up a lot of enthusiasm for Eaton (ETN). The company is frequently a middle-of-the-pack grower, and while the company's efforts to restructure and improve margins have helped, it's not exactly a standout on profitability, nor is it really a clear leader in the markets that really set institutional investors' hearts aflutter these days.

Now, before the Eaton fans light their torches and grab their pitchforks, understand that I have *no* problem with a "boring" company. In fact, a lot of my best-performing investments have been in companies that lack a lot of buzz. What's more, I am intrigued by Eaton's valuation. Unless I'm really missing something, it looks like these shares are offering nearly double-digit total annualized return potential on long-term growth of just 3% or so. In a generally expensive stock market, and with many end-markets improving, I'm warming up to Eaton as a late value-driven play.

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Eaton Lacks Sizzle, But The Valuation Is Interesting