Emerson Electric (EMR) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Emerson Electric (EMR) ending at $94.39, denoting a -1.45% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.36%.
The the stock of maker of process controls systems, valves and analytical instruments has fallen by 1.78% in the past month, lagging the Industrial Products sector's loss of 0.83% and the S&P 500's gain of 2.4%.
Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to go public on February 7, 2024. The company is forecasted to report an EPS of $1.04, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.89 billion, showing a 15.46% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.29 per share and revenue of $17.32 billion, indicating changes of +19.14% and +14.23%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).
Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 18.12. This expresses a discount compared to the average Forward P/E of 20.31 of its industry.
We can additionally observe that EMR currently boasts a PEG ratio of 1.77. 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. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.85.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
