10 Most Promising Energy Stocks According to Hedge Funds

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1. Eaton Corporation Plc (NYSE:ETN)

Number of Hedge Fund Holders: 93

Eaton Corporation Plc (NYSE:ETN) operates in over 175 countries, offering innovative solutions for managing electrical, hydraulic, and mechanical power across various industries, including data centers, utilities, and transportation. The company has a long-standing commitment to shareholder value, as shown by its continuous dividend payments since 1923.

Eaton Corporation Plc (NYSE:ETN) reported strong second-quarter 2024 results, showcasing 9% organic sales growth and a 33% increase in earnings per share compared to 2023, driven by stable orders and strategic initiatives. This performance has drawn interest from investors, leading to a significant rise in the number of hedge fund holders in recent quarters. Running Oak Capital increased its stake in the company by 19% during Q2 2024.

Analysts are optimistic about Eaton Corporation Plc’s (NYSE:ETN) long-term outlook and have assigned an average rating of “Moderate Buy” with a 12-month price target of $353.7. The price target reflects a potential upside of over 3% from its current price levels.

Here’s what Carillon Tower Advisers said about Eaton Corporation Plc (NYSE:ETN) in its Q1 2024 investor letter:

Eaton Corporation plc (NYSE:ETN) traded higher after announcing better than expected quarterly results as well as providing guidance that was ahead of expectations for the fiscal year. The electrical power equipment company also announced a proactive multi-year restructuring program, enabling Eaton to continue growing while also reducing costs.”

Overall, Eaton Corporation Plc (NYSE:ETN) ranks first among the 10 most promising energy stocks according to hedge funds. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ETN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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