Eaton (ETN) fell 16% over the past month, alongside GE Vernova (down 13%) and Vertiv (down 11%), after Meta Platforms raised the low end of its 2026 capital spending range to $135-$145 billion and turned free cash flow negative, raising investor concern about how the spending will be funded. Eaton's third-quarter report showed record sales of $8.9 billion, up 28%, and raised its 2026 adjusted EPS guidance to $13.70-$13.80. At Monday's close, the stock traded at 24x forward earnings, slightly below its five-year average of 25x and well under the 33x it reached in April. The author sees demand still accelerating and views the drop as a possible investment opportunity, while noting that hyperscaler spending updates are what to watch next.
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