Emerson Electric (EMR) Gains But Lags Market: What You Should Know
Emerson Electric (EMR) closed at $81.92 in the latest trading session, marking a +1.73% move from the prior day. This move lagged the S&P 500's daily gain of 1.76%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had lost 7.35% over the past month. This has was narrower than the Industrial Products sector's loss of 8.43% and lagged the S&P 500's loss of 5.94% in that time.
Emerson Electric will be looking to display strength as it nears its next earnings release. On that day, Emerson Electric is projected to report earnings of $0.97 per share, which would represent a year-over-year decline of 24.81%. Meanwhile, our latest consensus estimate is calling for revenue of $3.65 billion, down 23.85% from the prior-year quarter.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $14.96 billion. These results would represent year-over-year changes of -22.48% and -23.76%, respectively.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 19.77. For comparison, its industry has an average Forward P/E of 19.71, which means Emerson Electric is trading at a premium to the group.
We can also see that EMR currently has a PEG ratio of 2.33. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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