Philippe Laffont Stock Portfolio: Top 10 Stock Picks

6. Eaton Corporation plc (NYSE:ETN)

Coatue Management’s Stake Value: $1.47 billion

Number of Hedge Fund Holders: 88

Eaton Corporation plc (NYSE:ETN) operates as a power management company. Bank of America Securities analyst Andrew Obin reiterated the bullish stance on the company’s stock, offering a “Buy” rating on March 6. The analyst opines that the company’s capacity additions, mainly in North America, can fuel organic growth in the Electrical Americas segment. Eaton Corporation plc (NYSE:ETN) continues to strategically expand its capacity to address demand, which is backed by a healthy order book. The company’s prudent approach, together with the potential for margin improvement in critical markets such as utility and data centers, aids the anticipation of continued earnings growth.

By 2030, Eaton Corporation plc (NYSE:ETN) expects to deliver an organic revenue CAGR of between 6% to 9% and an adjusted EPS CAGR of more than 12%. While the company remains committed to delivering increased margins and solid free cash flow, its strong balance sheet allows financial flexibility to allocate capital in a disciplined and balanced way. Eaton Corporation plc (NYSE:ETN) remains well-positioned to capitalize on the global trend towards electrification. With companies and consumers pivoting towards electric solutions, the demand for sophisticated power management systems continues to increase rapidly. The company’s expertise in electrical systems, power distribution, and energy storage positions it well amidst the transition.