Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Emerson Electric (EMR) closed at $97.47, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.

Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 7.48% over the past month. This has outpaced the Industrial Products sector's gain of 1.34% and the S&P 500's gain of 0.64% in that time.

Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. This is expected to be February 2, 2022. The company is expected to report EPS of $0.99, up 19.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.47 billion, up 7.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $19.34 billion. These totals would mark changes of +19.76% and +6.03%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Emerson Electric is currently a Zacks Rank #3 (Hold).

Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 19.86. For comparison, its industry has an average Forward P/E of 23.1, which means Emerson Electric is trading at a discount to the group.

Also, we should mention that EMR has a PEG ratio of 2.28. 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. EMR's industry had an average PEG ratio of 1.96 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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