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Emerson Electric (EMR) Dips More Than Broader Market: What You Should Know

In the latest market close, Emerson Electric (EMR) reached $108.14, with a -0.5% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.

The maker of process controls systems, valves and analytical instruments's shares have seen a decrease of 5.23% over the last month, not keeping up with the Industrial Products sector's loss of 4.2% and the S&P 500's gain of 3.59%.

Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.41, indicating a 9.3% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.45 billion, indicating a 12.7% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.47 per share and revenue of $17.57 billion, which would represent changes of +23.2% and +15.85%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 19.87. This denotes a discount relative to the industry's average Forward P/E of 22.56.

Investors should also note that EMR has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 1.89 as trading concluded yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 18, finds itself in the top 8% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.

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Emerson Electric Co. (EMR) : Free Stock Analysis Report

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