115 years old but driving huge returns in a most modern way

This is the sixth and final piece in a series examining "boring" large-cap stocks that have outperformed the Nasdaq-100 over the past five years. The first piece introduced the methodology and the companies. Over the subsequent few weeks, the series has looked at Curtiss-Wright, Williams Companies, Parker Hannifin and Costco. This week's closing entry: power management company Eaton (ETN), a century-old company benefitting from the most modern of tailwinds.

As of June 26, 2026, Eaton's 5-year total return with dividends reinvested was 198.67%, almost double the Nasdaq-100's 109.52% over the same period.

While the company's product line may not seem overly exciting for the average investor, Eaton is one of those "boring" companies that provides exactly what businesses need. Both the company and its shareholders have been major beneficiaries of this over the past five years.

MORE FROM THE ‘BORING STOCKS' SERIES:

• Part 1:These stocks crushed the Nasdaq-100 over past 5 years
• Part 2:This stock has had a 500% return on investment
• Part 3:Boring, quiet and beating the market
• Part 4:An annual dividend that's increased for 70 straight years
• Part 5:Why Costco is more than a place to shop

IMPORTANT: This article is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. You should conduct your own research and consult a financial advisor before making any investment decisions.

What Eaton Actually Does

Eaton got its name from its founder Joseph Eaton in 1911. Originally founded to create truck axles, the company evolved over the following century, changing its name several times, making dozens of acquisitions and shifting its core business repeatedly. But the underlying principle of the company, to create industrial infrastructure that everything else depends on, lives on today.

The current version of Eaton operates as an intelligent power management company, with a presence in over 175 countries and a workforce of over 85,000 employees. The bulk of its modern-day revenue comes from its Electrical Americas and Electrical Global segments, which produce necessary components ranging from circuit breakers and switchgear to uninterruptible power supplies and power distribution systems.

Although the EA and EG segments drive the most revenue, the company also has robust aerospace, vehicle and mobility divisions.

How AI Helped Modernize the Company

In 2026, you can't make it through the day without hearing about AI. This is especially true in the financial media, where seemingly any company with even the remotest connection to AI makes headlines. Eaton wouldn't likely call itself an "AI company," but its products are flying off the shelves as AI expands exponentially.

In the first quarter of 2026, for example, Eaton reported that data center orders surged 240% year over year in its Electrical Americas segment. Unbelievably, the company announced that it's currently building 12 new factories just to keep up with demand.

In March 2026, Eaton closed its $9.55 billion acquisition of Boyd Thermal, which adds liquid cooling capabilities. This is yet another important cornerstone of the AI buildout, as AI chips produce more heat than conventional air cooling can dissipate.

For those who invest more in "picks-and-shovels" companies, Eaton has been very attractive.

Old Company, New Growth Rates

Industrial companies don't traditionally light up the screens of growth investors. While they're usually steady and defensible, they also tend to be slow growers. Eaton's recent results shatter that convention.

Here's a look at the numbers:

• Q1 2026 net sales reached a record $7.5 billion, up 17% year over year
• Organic growth reached 10%, above the high end of guidance
• Adjusted EPS for Q1 2026 reached $2.81, a first-quarter record that topped consensus estimates of $2.73
• Data center orders skyrocketed 240% year over year in the Electrical Americas segment
• Rolling 12-month orders in the Electrical Americas segment jumped 42%
• Electrical backlog rose 48% year over year
• Operating cash flow more than doubled, jumping 113% year-over-year to $507 million
• Free cash exploded to $314 million, up 245%
• Company raised full-year 2026 adjusted EPS guidance from $13.05 to $13.50
• Eaton's dividend, which it has paid every year since 1923, rose 6% to $1.10 per share

For a company that started out making truck axles, Eaton is generating an unusual level of operating profitability in the AI age.

What This Means for You

Eaton has never been a stock to buy for a quick gain. But as investors over the last five years have learned, a company that produces basic equipment for a rapidly growing industry can ride the wave just as successfully.

Over the company's 100-plus-year history, it has consistently shown the ability to reinvent itself and provide the necessary equipment that allows other industries to grow. Whether or not the AI boom continues to expand, that fundamental principle is likely to remain intact.

This is not a recommendation to buy shares of Eaton stock. As with the other four companies on our "boring stocks" list, it's simply an example of how under-the-radar companies can outperform even the shiniest stars in the investment universe.

IMPORTANT: This article is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. You should conduct your own research and consult a financial advisor before making any investment decisions. Performance figures are 5-year total returns with dividends reinvested, sourced from totalrealreturns.com as of market close on June 25, 2026.

This story written for TheStreet by Nifty 50+

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This story was originally published July 7, 2026 at 9:03 AM.