Is Eaton (ETN) Cheap As It Doubles Fibrebond Capacity With A $242 Million Expansion?

Eaton (ETN) is committing more than US$242 million to a new 1 million square foot facility in North Little Rock, Arkansas. The facility is intended to double Fibrebond’s U.S. capacity for customized electrical enclosures. For Eaton, the Arkansas expansion comes after a strong run in the share price, with a year to date share price return of 21.33%, even though the stock has pulled back with a 30 day share price decline of 10.71%. Recent news around increased Fibrebond capacity and upcoming...