Emerson Electric (EMR) Gains But Lags Market: What You Should Know
In the latest trading session, Emerson Electric (EMR) closed at $97.82, marking a +0.58% move from the previous day. The stock lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 1.15% in the past month. In that same time, the Industrial Products sector gained 2.5%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. On that day, Emerson Electric is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 16.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.47 billion, down 22.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $14.85 billion, which would represent changes of -22.29% and -24.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Emerson Electric is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 23.82. This represents a premium compared to its industry's average Forward P/E of 20.32.
Also, we should mention that EMR has a PEG ratio of 2.83. 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. EMR's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
