Is ETN a good stock to buy? We came across a bullish thesis on Eaton Corporation plc on WealthWise’s Substack. In this article, we will summarize the bulls’ thesis on ETN. Eaton Corporation plc’s share was trading at $361.06 as of March 10th. ETN’s trailing and forward P/E were 33.86 and 26.60 respectively according to Yahoo Finance.
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Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific. ETN is emerging as a compelling investment opportunity, driven by robust growth in its data center business and strategic expansion initiatives.
BNP Paribas analyst Andrew Buscaglia highlighted Eaton as a top 2026 pick, assigning a $430 price target, implying nearly 30% upside, with a potential stretch toward $500 if growth expectations are realized. Despite investor sentiment cooling, Eaton’s data center revenue demonstrated impressive momentum, rising 45% in 2024 and another 50% through the first nine months of 2025, signaling strong underlying demand.
The company has been investing heavily in production capacity, including six new facilities, to meet rising requirements, particularly in AI-driven data centers. As utilization ramps up, margins are expected to recover, with sales from these high-growth segments contributing meaningfully to earnings in the second half of the year, potentially exceeding current market forecasts.
Eaton’s recent acquisition of Boyd, a leading supplier of liquid cooling solutions, further strengthens its position in the fast-growing data center infrastructure market, with BNP Paribas now projecting annual data center revenue growth above 40% over the next several years. Additionally, Eaton is exploring strategic options for its vehicle business, including a potential sale, which could generate proceeds for debt reduction or shareholder returns, further enhancing shareholder value.
Overall, Eaton presents a bullish investment case, combining accelerating revenue growth, margin recovery potential, and strategic capital allocation opportunities, making the stock an attractive entry point for investors seeking exposure to high-growth electrical equipment and data center infrastructure markets.
Previously, we covered a bullish thesis on Hubbell Incorporated (HUBB) by Stock Analysis Compilation in December 2024, which highlighted grid modernization demand, renewable energy expansion, and strategic acquisitions supporting growth. HUBB’s stock price has appreciated by approximately 2.34% since our coverage. WealthWise shares a similar view but emphasizes Eaton Corporation plc’s accelerating data center growth driven by AI demand and capacity expansion.
