Jim Cramer says you shouldn't sell Eaton (ETN).

We recently published a list Jim Cramer’s latest portfolio heading into 2025: Top 10 stocks. In this article, we’ll take a look at where Eaton Corporation plc (NYSE:ETN) ranks compared to other stocks in Jim Cramer’s latest 2025 portfolio.

Jim Cramer reiterated his view that the market is currently oversold in a recent broadcast and explained to investors his methodology for analyzing market sell and buy indicators based on an oscillator.

“As soon as it hits minus 5, you have to hold your nose and start buying, no matter how bad it looks. Minus 5 means we are oversold and an uptrend is imminent. When the oscillator drops below minus 8 like it did last night, you can only buy with your fist. Under no circumstances should you sell when the oscillator is below minus 8 because at that point the selling ship has sailed. The odds are stacked against you if you sell into an extremely oversold market.”

Cramer then mentioned some historical data points that explain the returns one could achieve by investing when the market is in oversold territory.

“If you had bought the S&P 500 Index when the oscillator reached minus 8, you would have made an average gain of 2.88% over the next 30 days. This is the case over a 10-year period, with the median increasing by 4.7%. After 60 days, things get even better – the average gain was 8.93% and the median was over 9%. Those are some big steps. How about the odds? Thirty days after the oscillator hit minus 8 last night, the market was up 70% of the time. Sixty days later, the market was up 80%. This is an extraordinarily reliable pattern, folks. Of course, nothing in the market is certain, but the frequency of these gains means the odds are heavily in your favor if you buy in an oversold market this time.”

READ ALSO: The 7 best stocks to buy for the long term And 8 cheap Jim Cramer stocks to invest in

For this article, we looked at several of Jim Cramer’s recent shows and picked 10 stocks he talks about. For each company, we have mentioned its current hedge fund sentiment. Why do we care about the stocks hedge funds invest in? The reason is simple: Our research shows that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Further details can be found here).

Jim Cramer says you shouldn't sell Eaton (ETN). — Jim Cramer says you shouldn’t sell Eaton (ETN).

Number of hedge fund investors: 90

Jim Cramer was asked for his opinion on Eaton Corporation plc (NYSE:ETN) and the stock’s decline in recent days. Cramer recommended that the investor hold the stock and not sell it.

“Eaton Corporation plc (NYSE:ETN) is a buy-and-hold story. They’ve really done an incredible job revolutionizing this portfolio. At Eaton they are pure winners. Don’t sell. Own.”

The Electrical Americas segment remains the standout performer for Eaton Corporation plc (NYSE:ETN), driven by strong demand from data centers, utilities and manufacturers. This demand is expected to continue as the segment maintains a book-to-bill ratio of 1.2 and a 26% year-over-year increase in backlog. Growth in the Electrical Global segment is more muted, although still positive, with many countries lagging behind the US on key long-term trends. However, this segment faces greater challenges in margin expansion compared to its domestic counterpart. The aerospace segment is also performing well, posting growth in sales, margins and backlog in the third quarter despite business disruptions caused by Hurricane Helene and the strike at Boeing (BA). The key challenges for the company lie in its two automotive segments, vehicle and e-mobility. Demand for electric vehicles has slowed significantly, and demand for commercial vehicles in the internal combustion engine (ICE) market is also declining.

In 2025, all of Eaton Corporation plc’s (NYSE:ETN) segments are forecast to grow except commercial vehicles, with the commercial vehicle segment accounting for just 7% of Eaton’s revenue. Data centers, commercial aerospace and electric vehicles are expected to see strong double-digit growth, together accounting for 29% of Eaton Corporation plc’s (NYSE:ETN) revenue.

Ave Maria World Equity Fund stated the following about Eaton Corporation plc (NYSE:ETN) in its report. Investor letter for the first quarter of 2024:

“Eaton Corporation plc (NYSE:ETN) is an intelligent energy management company. The company benefits in the long term from the trend towards electrification, energy transition and digitalization. Eaton also benefits from unprecedented global stimulus such as the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, the Chips and Science Act and the NextGenerationEU economic stimulus program.”

Overall, ETN 1st place on our list of Jim Cramer’s latest portfolio for 2025. While we recognize ETN’s potential, we believe that under-the-radar AI stocks have greater prospects for delivering higher returns, and within a shorter time frame. If you’re looking for an AI stock that has more promise than ETN but trades at less than 5x earnings, check out our report on it cheapest AI stock.

READ MORE: The 8 Best Wide Moat Stocks to Buy Now And The 30 most important AI stocks according to BlackRock

Disclosure: None. This article was originally published at Insider monkey.

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