Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024

5. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 90

Cramer mentioned Eaton Corporation plc (NYSE:ETN) and remarked:

“Now it was a big cluster with gains in the mid-fifties… Then there’s Eaton, Charitable Trust holding, makes electrical components for the data center.”

Eaton (NYSE:ETN) is a power management company offering a wide range of electrical, aerospace, vehicle, and eMobility products and services. As per management’s guidance, the company expects its organic growth for 2024 to range between 8% and 9%, although it anticipates the revenue growth to fall on the lower end of that spectrum due to challenges like ongoing labor strikes in the aerospace industry and a slowdown in vehicle markets.

For 2024, adjusted EPS is forecast to be between $10.75 and $10.81, with the midpoint of $10.78 representing an 18% growth in adjusted EPS. This projection reflects a slight increase of $0.08 over its previous estimate and a $0.63 rise from its initial guidance for the year. Looking ahead to 2025, management expects strong growth across nearly all markets, with particularly high growth anticipated in data centers, distributed IT, commercial aerospace, and electric vehicles.

Utility and other markets are also expected to experience solid growth, while the commercial vehicle market is forecast to decline. In total, Eaton (NYSE:ETN) anticipates its end markets will grow by 6% to 8% in 2025, with incremental margins between 30% and 35%. The company’s ongoing multi-year restructuring program is expected to result in savings of $75 million. Additionally, it plans to continue share repurchases, estimating around $2 billion in buybacks for the year.