Is Eaton (ETN) a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Sustainability Leaders Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Sustainability Leaders Strategy underperformed its Russell 3000 Index benchmark during the first quarter. On an absolute basis, the Strategy had gains in one of 10 sectors in which it was invested (out of 11 sectors total) – the utilities sector. The main detractors were the information technology (IT), consumer discretionary and industrials sectors. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Sustainability Leaders Strategy mentioned Eaton Corporation plc (NYSE:ETN) and explained its insights for the company. Founded in 1911, Eaton Corporation plc (NYSE:ETN)  is a Dublin, Ireland-based multinational power management company with a $59.1 billion market capitalization. Eaton Corporation plc (NYSE:ETN)  delivered a -14.89% return since the beginning of the year, while its 12-month returns are down by -0.22%. The stock closed at $147.29 per share on May 06, 2022.

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Eaton Corporation plc (NYSE:ETN) in its Q1 2022 investor letter:

“We also added to Eaton (NYSE:ETN), a market leader in the electrical equipment industry and a position begun late in 2021. Eaton’s products enable the electrification of the power grid and, importantly, EV charging infrastructure. Share prices should benefit as EVs grow and investments increase to improve grid efficiency and resilience.”

Christian Lagerek/Shutterstock.com

Our calculations show that Eaton Corporation plc (NYSE:ETN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Eaton Corporation plc (NYSE:ETN) was in 43 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 45 funds in the previous quarter. Eaton Corporation plc (NYSE:ETN) delivered a -2.02)% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Eaton Corporation plc (NYSE:ETN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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