Emerson Electric (EMR) Ascends But Remains Behind Market: Some Facts to Note
In the latest market close, Emerson Electric (EMR) reached $94.87, with a +0.07% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The maker of process controls systems, valves and analytical instruments's stock has dropped by 1.8% in the past month, falling short of the Industrial Products sector's gain of 4.54% and the S&P 500's gain of 3.52%.
Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company's upcoming EPS is projected at $0.96, signifying a 23.08% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.89 billion, indicating a 15.46% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.14 per share and a revenue of $17.32 billion, representing changes of +15.77% and +14.23%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.85% decrease. Emerson Electric is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Emerson Electric is currently exchanging hands at a Forward P/E ratio of 18.45. Its industry sports an average Forward P/E of 20.9, so one might conclude that Emerson Electric is trading at a discount comparatively.
We can additionally observe that EMR currently boasts a PEG ratio of 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
