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Emerson's (EMR) DeltaV Automation System Gets Certification

Zacks Equity Research

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.

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