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Emerson Electric (EMR) Gains But Lags Market: What You Should Know

In the latest trading session, Emerson Electric (EMR) closed at $94.93, marking a +0.23% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 5.09% over the past month. This has outpaced the Industrial Products sector's gain of 3.53% and the S&P 500's gain of 3.49% in that time.

Investors will be hoping for strength from Emerson Electric as it approaches its next earnings release. The company is expected to report EPS of $0.88, down 16.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.47 billion, down 22.49% from the year-ago period.

EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.24 per share and revenue of $14.85 billion. These results would represent year-over-year changes of -19.24% and -24.33%, respectively.

It is also important to note the recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 2.95% lower within the past month. Emerson Electric is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 22.33 right now. Its industry sports an average Forward P/E of 20.81, so we one might conclude that Emerson Electric is trading at a premium comparatively.

Also, we should mention that EMR has a PEG ratio of 2.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EMR's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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