Value
10.0/10data confidence 33%| Component | Sub-score |
|---|---|
| P/E | 9.9 |
| PEG | 10.0 |
- ▸PEG: 0.03
- ▸Attractively valued
ETW · Why this verdict
Why Eaton Vance Corporation Eaton V (ETW) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score6.5/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
Eaton Vance Enhanced Equity screens as an extremely cheap, peer-leading holding in a confirmed technical breakout, but sits near its 52-week high with exhausted modeled upside and a dividend-safety flag.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
ETW screens as extremely cheap on a growth-adjusted basis, with a PEG ratio of just 0.03, driving a perfect value score of 10.0 out of 10. Valuation breakdown | PEG ratio should stay below 0.3 and value score above 8.0 as long as the valuation gap persists. | →Stable |
| CounterValue-dimension confidence is only 0.33, the lowest-confidence input in the model, and a PEG this extreme for a closed-end covered-call fund likely reflects how 'earnings growth' is computed rather than genuine deep-value mispricing. | ||
ETW ranks with an attractive P/E and best-in-class margins versus asset-management peers, reflected in a quality peer-rank of 8.9 out of 10. Peer-rank breakdown | The quality peer-rank should remain above 7.0 as long as the margin advantage versus peers persists. | →Stable |
| CounterAbsolute ROE and ROA scores are weak (5.9 and 0.3 out of 10), so the 'best-in-class' framing is relative to a weak peer set rather than an absolute strength. | ||
ETW is in a confirmed technical breakout, with a golden cross, price above all major moving averages, RSI at 62, and bullish MACD, sitting just 1.0% below its 52-week high. Chart pattern detection | The stock should hold above its moving averages and push through to a new 52-week high. | →Stable |
| CounterWith the asymmetry gate already flagging upside as exhausted, the breakout has limited room to run before requiring a fresh catalyst or a raised price target. | ||
The catalyst dimension flags a yield-trap warning: the fund's distribution yield is high but the underlying safety score is only 4.8 out of 10. Catalyst breakdown | Dividend safety score should climb above 6.0 if the payout-coverage concern resolves. | →Stable |
| CounterCovered-call funds like ETW often sustain high distributions through option premium income even when a simple safety score looks weak on NAV total-return coverage, which may overstate cut risk. | ||
ETW screens as extremely cheap on a growth-adjusted basis, with a PEG ratio of just 0.03, driving a perfect value score of 10.0 out of 10.
→StableValuation breakdown
- Expectation
- PEG ratio should stay below 0.3 and value score above 8.0 as long as the valuation gap persists.
CounterValue-dimension confidence is only 0.33, the lowest-confidence input in the model, and a PEG this extreme for a closed-end covered-call fund likely reflects how 'earnings growth' is computed rather than genuine deep-value mispricing.
ETW ranks with an attractive P/E and best-in-class margins versus asset-management peers, reflected in a quality peer-rank of 8.9 out of 10.
→StablePeer-rank breakdown
- Expectation
- The quality peer-rank should remain above 7.0 as long as the margin advantage versus peers persists.
CounterAbsolute ROE and ROA scores are weak (5.9 and 0.3 out of 10), so the 'best-in-class' framing is relative to a weak peer set rather than an absolute strength.
ETW is in a confirmed technical breakout, with a golden cross, price above all major moving averages, RSI at 62, and bullish MACD, sitting just 1.0% below its 52-week high.
→StableChart pattern detection
- Expectation
- The stock should hold above its moving averages and push through to a new 52-week high.
CounterWith the asymmetry gate already flagging upside as exhausted, the breakout has limited room to run before requiring a fresh catalyst or a raised price target.
The catalyst dimension flags a yield-trap warning: the fund's distribution yield is high but the underlying safety score is only 4.8 out of 10.
→StableCatalyst breakdown
- Expectation
- Dividend safety score should climb above 6.0 if the payout-coverage concern resolves.
CounterCovered-call funds like ETW often sustain high distributions through option premium income even when a simple safety score looks weak on NAV total-return coverage, which may overstate cut risk.
Per-dimension breakdown
Quality
5.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 5.9 |
| ROA | 0.3 |
| Gross margin | 10.0 |
| Op margin | 6.7 |
| Current ratio | 2.0 |
| Moat | 6.2 |
| Piotroski F | 7.8 |
- ▸Strong Piotroski F-Score: 7/9
Growth
6.8/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.7 |
| EPS growth | 10.0 |
Momentum
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.5 |
| MACD | 3.9 |
| OBV | 1.0 |
| MA position | 9.0 |
| Volume | 6.0 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
5.0/10data confidence 33%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
Insider
5.0/10data confidence 50%Peer rank
6.2/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.8 |
| quality rank | 8.9 |
| growth rank | 6.3 |
- ▸Attractive P/E vs peers
- ▸Best-in-class margins
Technical
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 4.9 |
| support resistance | 4.4 |
| 52w position | 9.6 |
Risk (lower is worse)
9.3/10data confidence 60%| Component | Sub-score |
|---|---|
| days to cover | 10.0 |
| volatility | 9.8 |
| beta | 8.0 |
Catalyst
4.5/10data confidence 25%| Component | Sub-score |
|---|---|
| dividend safety | 4.5 |
- ▸Yield trap warning: high yield but unsafe
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (7)
- MOMENTUM:5.1>=4.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:NO_DATE
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (2)
- MOMENTUM:5.1<5.5 (soft — BUY_NOW allowed but watch)
- ASYMMETRY:UPSIDE_EXHAUSTED (upside=0.0%)
Reward-to-Risk
0.00
Upside
+0.0%
Downside
5.0%
Sizing output
AVOID
SetupRange Bound — RSI 54 mid-range, Bollinger mid-band
EdgeInst Constrain — Small cap ($1.0B) below institutional reach
SuitabilityAggressive — MCap $1.0B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:5.1>=4.5. Top dim: Value at 10.0; weakest: Catalyst at 4.5. No conviction either direction.
The strongest dimensions are Value at 10.0, Risk (lower is worse) at 9.3, and Growth at 6.8; the weakest are Catalyst at 4.5, Insider at 5.0, and Sentiment at 5.0. The V9 engine cleared all gates with 2 warnings, producing an asymmetric reward-to-risk of 0.00 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Extremely Cheap Peg Valuation
Trip ifPEG ratio rises above 1.0 from the current 0.03.
- P2Peer Leading Margins And Value
Trip ifQuality peer-rank falls below 5.0 from the current 8.9.
- P3Technical Breakout Near High
Trip ifRSI falls below 50 from the current 62, signaling the breakout has lost momentum.
- P4Dividend Yield Trap Risk
Trip ifDividend safety score falls below 3.0 from the current 4.8.