Emerson Electric (EMR) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Emerson Electric (EMR) reached $94.75, with a -0.27% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
Heading into today, shares of the maker of process controls systems, valves and analytical instruments had lost 2.38% over the past month, lagging the Industrial Products sector's gain of 0.15% and the S&P 500's gain of 3.36% in that time.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is slated to reveal its earnings on February 7, 2024. On that day, Emerson Electric is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $3.89 billion, up 15.4% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.29 per share and a revenue of $17.32 billion, signifying shifts of +19.14% and +14.23%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 17.97 right now. This indicates a discount in contrast to its industry's Forward P/E of 20.85.
We can also see that EMR currently has a PEG ratio of 1.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.93.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 11, finds itself in the top 5% echelons of all 250+ industries.
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.
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
