We're buying the post-earnings dip in an AI industrial stock with a bright future

We are buying 25 shares of Eaton at roughly $398 each. Following Tuesday's trade, Jim Cramer's Charitable Trust will own 250 shares of ETN, increasing its weight in the portfolio to 2.63% from 2.38%. We are picking up more shares of Eaton as the stock falls less than 6% after reporting first quarter earnings. The electrical equipment company posted better than expected numbers, beating Street estimates on both net sales and adjusted earnings per share (EPS). However, the stock dropped in early trading because management only raised its full-year adjusted EPS outlook by a small amount. Also, the midpoint of its second quarter earnings outlook was below the Street consensus estimate too. Investors in the AI infrastructure theme want to see bigger beats and raises to justify the year to date stock moves and high price-to-earnings multiples. In this snapshot of time, Eaton didn't deliver. We are buyers of this weakness because we have a longer-term view. If you look at Eaton's order book – which tells you where revenue and earnings are going in the future – there's a great story here. ETN YTD mountain Eaton YTD Organic orders accelerated in Electrical America's to 42% year over year, with data center orders up 240%. Elsewhere, Electrical Global and Aerospace orders increased 13% year over year. Eaton's an order story, and we think investors should focus more on the strength here over near term margin concerns. …