Emerson Electric (EMR) Increases Yet Falls Behind Market: What Investors Need to Know
Emerson Electric (EMR) ended the recent trading session at $110.28, demonstrating a +0.44% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.03%. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 5.49% in the past month. In that same time, the Industrial Products sector gained 5.61%, while the S&P 500 gained 3.21%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company's upcoming EPS is projected at $1.24, signifying a 13.76% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.27 billion, indicating a 13.74% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.41 per share and revenue of $17.53 billion. These totals would mark changes of +21.85% and +15.61%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.2% upward. Right now, Emerson Electric possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 20.29. This represents a discount compared to its industry's average Forward P/E of 21.49.
It's also important to note that EMR currently trades at a PEG ratio of 1.9. 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 1.95 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 39, which puts it in the top 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
