TCW funds released their third-quarter 2025 investor letter, with the TCW Concentrated Large Cap Growth Fund returning +4.11% compared to +10.51% for the Russell 1000 Growth Index. The fund highlighted Eaton Corporation plc (NYSE:ETN), a global power management company, with a one-month return of -5.27% and stock price closing at $323.67 on December 24, 2025.

In the investor letter, TCW Concentrated Large Cap Growth Fund praised Eaton Corporation plc (NYSE:ETN) for its evolution into a higher growth, higher margin company focused on electrical and aerospace markets. The company is well-positioned to benefit from electronification, AI datacenter buildouts, and reshoring trends, with a large backlog of megaprojects providing multi-year visibility.

Despite not being on the list of 30 Most Popular Stocks Among Hedge Funds, Eaton Corporation plc (NYSE:ETN) reported quarterly earnings of $7 billion for Q3 2025, increasing margins to 25%. While the company shows potential as an investment, some AI stocks offer greater upside potential with less downside risk. Investors seeking an undervalued AI stock should explore the free report on the best short-term AI stock.

Read more at Yahoo Finance: Is Eaton Corporation plc (ETN) Leveraging Secular Tailwinds?