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6 stocks we love: Buffett is our Valentine

Show your portfolio some love this Valentine's Day with Berkshire Hathaway and five other sweetheart stock picks. They're fairly valued, have clean balance sheets and good long-term prospects.

Eaton Co.

  • P/E: 15
  • Estimated earnings growth: 13%

They say power is the ultimate aphrodisiac, especially when it's delivered in an efficient way. Just ask Eaton (ETN).

Once known mainly as a maker of truck and airplane parts, Eaton has been shifting its focus over the past decade to the "power-management" business.

The diversified manufacturer makes things like circuit breakers, switchgear and panelboards that help factories, utilities and governments save power. It also specializes in hydraulics systems for agriculture, construction and mining, among other heavy industries.

Eaton has been expanding in recent years as it anticipates a boom in global demand for energy-efficient manufacturing. It bought rival Cooper Industries for nearly $12 billion in 2012.

The focus on energy makes Eaton less vulnerable if the economy slows. But the company still has a large presence in the automotive and aerospace market, which could be at risk in a downturn. It's also exposed to volatile emerging markets such as China and Brazil.

Related: Emerson Electric bets on a manufacturing renaissance

Still, Eaton may be an attractive way for investors to capitalize on a potential manufacturing renaissance in the U.S.

The stock, which has taken a hit this year, trades at a slight discount to the broader market. Yet analysts are expecting earnings growth of more than 16% this year and 13% for the next few years.

Source: FactSet Research
P/E based on 2014 earnings estimates. Projected growth rates are for next five years. Data as of 2/13/14.
  @ben_rooney - Last updated February 14 2014 03:55 AM ET

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