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Emerson Electric (EMR) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Emerson Electric (EMR) closed at $89.34, marking a -0.81% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 12.08% in the past month. In that same time, the Industrial Products sector gained 12.87%, while the S&P 500 gained 8.35%.

Emerson Electric will be looking to display strength as it nears its next earnings release, which is expected to be August 9, 2022. The company is expected to report EPS of $1.29, up 18.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, up 9.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $19.87 billion, which would represent changes of +23.17% and +8.97%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. Emerson Electric is currently a Zacks Rank #3 (Hold).

Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 17.84. For comparison, its industry has an average Forward P/E of 19.73, which means Emerson Electric is trading at a discount to the group.

Also, we should mention that EMR has a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EMR's industry had an average PEG ratio of 1.73 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 144, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.


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