Here’s Why You Should Consider Investing in Eaton (ETN)

·2 min read

ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the third quarter. On an absolute basis, the Strategy had gains across four of the eight sectors in which it was invested (out of 11 sectors total). The leading contributors to performance were in the IT and health care sectors, while the consumer discretionary and industrials sectors were detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Large Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Eaton Corporation plc (NYSE: ETN) and discussed its stance on the firm. Eaton Corporation plc is a Dublin, Ireland-based multinational power management company with a $66.9 billion market capitalization. ETN delivered a -2.88% return since the beginning of the year, while its 12-month returns are up by 32.29%. The stock closed at $167.85 per share on January 07, 2022.

Here is what ClearBridge Large Cap Growth Strategy has to say about Eaton Corporation plc in its Q3 2021 investor letter:

"We extended our exposure to electricity infrastructure critical to power EVs with the recent purchase of Eaton, a manufacturer of power management products for a variety of end markets, a position we added to during the quarter. We believe upgrading the power grid to be more resilient and capable of handling the increasing needs of EVs through the two-way flow of electricity is a decade-long trend. For the U.S. and Europe to meet aggressive EV production goals, existing EV infrastructure must be upgraded to enable home and commercial car charging much more broadly. Eaton has 30% share of the equipment needed to satisfy many of these residential and commercial upgrades. The passage of an infrastructure bill would add to this trend."

Lithium, Battery, Electric, Vehicle
Lithium, Battery, Electric, Vehicle

Photo by Kumpan Electric on Unsplash

Based on our calculations, Eaton Corporation plc (NYSE: ETN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ETN was in 45 hedge fund portfolios at the end of the third quarter of 2021, compared to 40 funds in the previous quarter. Eaton Corporation plc (NYSE: ETN) delivered a 9.31% return in the past 3 months.

In July 2021, we also shared another hedge fund's views on ETN in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.

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