Eaton Corporation PLC (ETN)
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 61.99% per annum.
- ETN price at the close of November 19, 2024 was $363.69 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 7.62% per annum.
- ETN price at the close of November 19, 2024 was higher than the top border of the secondary price channel by $35.83 (10.93%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of ETN price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: June 13, 2022
End date: July 23, 2024
a = 3.5357
b = 0.0013
s = 0.0661
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 61.99%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0661) – 1
= 30.26%
June 13, 2022 calculations
Top border of price channel:
Exp(Y644)
= Exp(a + b × X644 + 2 × s)
= Exp(a + b × 936 + 2 × s)
= Exp(3.5357 + 0.0013 × 936 + 2 × 0.0661)
= Exp(4.9048)
= $134.94
Bottom border of price channel:
Exp(Y644)
= Exp(a + b × X644 – 2 × s)
= Exp(a + b × 936 – 2 × s)
= Exp(3.5357 + 0.0013 × 936 – 2 × 0.0661)
= Exp(4.6404)
= $103.59
July 23, 2024 calculations
Top border of price channel:
Exp(Y1,173)
= Exp(a + b × X1,173 + 2 × s)
= Exp(a + b × 1,707 + 2 × s)
= Exp(3.5357 + 0.0013 × 1,707 + 2 × 0.0661)
= Exp(5.9237)
= $373.80
Bottom border of price channel:
Exp(Y1,173)
= Exp(a + b × X1,173 – 2 × s)
= Exp(a + b × 1,707 – 2 × s)
= Exp(3.5357 + 0.0013 × 1,707 – 2 × 0.0661)
= Exp(5.6593)
= $286.96
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 61.99% per annum.
- ETN price at the close of November 19, 2024 was $363.69 and was inside the primary price channel.
Secondary Trend
Start date: February 29, 2024
End date: September 18, 2024
a = 6.0947
b = -0.0002
s = 0.0472
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -7.62%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0472) – 1
= 20.80%
February 29, 2024 calculations
Top border of price channel:
Exp(Y1,074)
= Exp(a + b × X1,074 + 2 × s)
= Exp(a + b × 1,562 + 2 × s)
= Exp(6.0947 + -0.0002 × 1,562 + 2 × 0.0472)
= Exp(5.8499)
= $347.21
Bottom border of price channel:
Exp(Y1,074)
= Exp(a + b × X1,074 – 2 × s)
= Exp(a + b × 1,562 – 2 × s)
= Exp(6.0947 + -0.0002 × 1,562 – 2 × 0.0472)
= Exp(5.6610)
= $287.43
September 18, 2024 calculations
Top border of price channel:
Exp(Y1,213)
= Exp(a + b × X1,213 + 2 × s)
= Exp(a + b × 1,764 + 2 × s)
= Exp(6.0947 + -0.0002 × 1,764 + 2 × 0.0472)
= Exp(5.8061)
= $332.31
Bottom border of price channel:
Exp(Y1,213)
= Exp(a + b × X1,213 – 2 × s)
= Exp(a + b × 1,764 – 2 × s)
= Exp(6.0947 + -0.0002 × 1,764 – 2 × 0.0472)
= Exp(5.6171)
= $275.10
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 7.62% per annum.
- ETN price at the close of November 19, 2024 was higher than the top border of the secondary price channel by $35.83 (10.93%). This indicates a possible reversal in the secondary trend direction.