In the latest trading session, Emerson Electric (EMR) closed at $74.20, marking a -1.09% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had lost 8.22% over the past month. This has was narrower than the Industrial Products sector's loss of 9.6% and lagged the S&P 500's loss of 8.19% in that time.
Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. On that day, Emerson Electric is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 14.88%. Our most recent consensus estimate is calling for quarterly revenue of $5.31 billion, up 7.39% from the year-ago period.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $5.11 per share and revenue of $19.54 billion. These results would represent year-over-year changes of +24.63% and +7.16%, respectively.
Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 14.69. This represents a discount compared to its industry's average Forward P/E of 17.73.
We can also see that EMR currently has a PEG ratio of 1.74. 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 currently had an average PEG ratio of 1.61 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 166, which puts it in the bottom 35% 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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