Tuesday, August 6, 2013

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.

Please follow this link to read more:
http://www.investopedia.com/stock-analysis/080613/eatons-conservatism-clashes-streets-enthusiasm-etn-mtor-wcc-emr.aspx

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