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

·3 min read

Emerson Electric (EMR) closed at $78.02 in the latest trading session, marking a -1.98% move from the prior day. This move lagged the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had lost 7.71% over the past month. This has lagged the Industrial Products sector's loss of 6.9% and the S&P 500's loss of 7.59% in that time.

Emerson Electric will be looking to display strength as it nears its next earnings release. On that day, Emerson Electric is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 14.88%. Our most recent consensus estimate is calling for quarterly revenue of $5.31 billion, up 7.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $19.54 billion, which would represent changes of +24.63% and +7.16%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.2% higher. Emerson Electric currently has a Zacks Rank of #3 (Hold).

Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 15.59. This represents a discount compared to its industry's average Forward P/E of 17.63.

Investors should also note that EMR has a PEG ratio of 1.85 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EMR's industry had an average PEG ratio of 1.69 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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