Wide-Moat Eaton Is Poised to Benefit From Multiple Secular Trends

Eaton manufactures mission-critical, highly engineered components designed to solve customer pain points in vital areas of the world’s infrastructure. A substantial portion of Eaton’s products are installed into customer operations and must be serviced or replaced at set intervals, which tends to carry higher margins than the sale of the equipment itself. Eaton boasts one of the largest global installed bases of electrical equipment, and trends such as rising regulatory standards for safety and efficiency, reshoring of supply chains within the US, and the explosion in data generation and energy consumption are fueling its growth.