Jim Cramer’s Top 10 Hottest Stock Picks

3. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 93

Morgan Stanley initiated coverage on Eaton Corporation plc (NYSE:ETN) with an “overweight” buy rating and set a price target of $370, while Wolfe Research upgraded the stock from a sell to a hold-equivalent. Jim Cramer believes Eaton Corporation plc (NYSE:ETN) is strongly positioned to benefit from major trends like the expansion of AI and data center infrastructure. He also mentioned that they are analyzing optimal buying points for Eaton Corporation plc (NYSE:ETN) and two other industrial stocks in his portfolio, similar to their recent analysis of four major tech companies.

“Morgan Stanley started Eaton with an overweight buy rating and a $370 price target. Wolfe Research upgraded the electrical components maker stock to a hold-equivalent from sell. I think this one is the most levered to megatrends such as AI data center buildouts. We look at key buy levels for Eaton and two other Club industrials. The exercise followed our look at what to pay for four tech megacaps.”

Eaton Corporation plc (NYSE:ETN) presents a strong investment opportunity due to its impressive performance and strategic focus on key trends like electrification, energy transition, and digitalization. In Q2 2024, Eaton Corporation plc (NYSE:ETN) achieved record earnings, with adjusted EPS rising 24% year-over-year and segment margins reaching 23.7%. Eaton Corporation plc (NYSE:ETN)’s success is fueled by increased demand for its electrical and aerospace solutions, setting the stage for continued growth.

Eaton Corporation plc (NYSE:ETN)’s large backlog and ongoing investments in expanding capacity are expected to boost its market share in important areas such as data centers and utilities. This blend of solid financial results, strategic investments, and favorable market conditions highlights Eaton Corporation plc (NYSE:ETN)’s potential for ongoing earnings growth, making it an attractive investment choice.

Ave Maria World Equity Fund stated the following regarding Eaton Corporation plc (NYSE:ETN)  in its first quarter 2024 investor letter:

“Eaton Corporation plc (NYSE:ETN) is an intelligent power management company. The company is a long-term beneficiary in the trend towards electrification, energy transition and digitalization. Eaton is also benefiting from unprecedented global stimuli such as the Inflation Reduction Act, Infrastructure Investment and Jobs Act, the Chips and Science Act and the EU recovery plan known as the NextGenerationEU.”