Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
Emerson Electric (EMR) closed at $96.38 in the latest trading session, marking a +1.13% move from the prior day. This move outpaced the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 3.22% over the past month, outpacing the Industrial Products sector's loss of 0.31% and the S&P 500's loss of 0.85% in that time.
Emerson Electric will be looking to display strength as it nears its next earnings release. In that report, analysts expect Emerson Electric to post earnings of $1 per share. This would mark year-over-year growth of 20.48%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 7.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $19.36 billion. These totals would mark changes of +19.76% and +6.14%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 19.42. This valuation marks a discount compared to its industry's average Forward P/E of 23.58.
Meanwhile, EMR's PEG ratio is currently 2.23. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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
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