Emerson Electric Company EMR recently obtained the industry’s first ISASecure System Security Assurance (SSA) Level 1 certification for cybersecurity. Notably, the company received the accreditation from ISA Security Compliance Institute for the latest version of its DeltaV distributed control system.
DeltaV is a user-friendly suite of products and services, which helps in reducing project risks. It also offers superior process control capabilities for major industrial facilities, including chemical plants, life science, oil and gas and refineries. With advanced functionality designed for most demanding process control applications, it helps in enhancing industrial facilities’ performance.
The ISASecure SSA Level 1 certification ensures that the company’s DeltaV distributed control and safety systems adhere to cybersecurity requirements for process and safety controls, covering most of the vital standards.
Existing Business Scenario
Emerson is well positioned to benefit from favorable global industrial end markets, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Going forward, the company’s Automation Solutions segment is likely to benefit from broad-based demand across most key markets, strong Maintenance, Repair and Operations projects as well as ongoing small to mid-sized brownfield and expansion projects.
In the past three months, the Zacks Rank #3 (Hold) stock has returned 12.4%, outperforming the industry’s rise of 7.2%.
However, increasing costs remain a cause of concern for Emerson. Notably, in the fiscal first quarter (ended December 2018), the company's cost of sales was up 9% year over year. As a matter of fact, it expects inflation environment to persist in the quarters ahead, and plans to have more material containment on account of the same.
Stocks to Consider
Some better-ranked stocks from the Zacks Industrial Products sector are iRobot Corporation IRBT, Avery Dennison Corporation AVY and Brady Corporation BRC. While iRobot sports a Zacks Rank #1 (Strong Buy), Avery Dennison and Brady carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
iRobot delivered average earnings surprise of 92.23% in the trailing four quarters.
Avery Dennison pulled off average positive earnings surprise of 3.63% in the trailing four quarters.
Brady delivered average earnings surprise of 5.71% in the trailing four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRobot Corporation (IRBT) : Free Stock Analysis Report
Emerson Electric Co. (EMR) : Free Stock Analysis Report
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
Brady Corporation (BRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research