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Emerson Electric (EMR) Rises But Trails Market: What Investors Should Know

Emerson Electric (EMR) closed the most recent trading day at $108.53, moving +0.03% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.

The maker of process controls systems, valves and analytical instruments's shares have seen a decrease of 5.5% over the last month, not keeping up with the Industrial Products sector's loss of 3.86% and the S&P 500's gain of 3.96%.

Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. On that day, Emerson Electric is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 9.3%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.45 billion, indicating a 12.7% increase compared to the same quarter of the previous 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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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Emerson Electric currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Emerson Electric is currently exchanging hands at a Forward P/E ratio of 19.84. This indicates a discount in contrast to its industry's Forward P/E of 22.57.

It's also important to note that EMR currently trades at a PEG ratio of 1.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.91 at the close of the market yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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Zacks Investment Research