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Emerson Electric (EMR) Advances But Underperforms Market: Key Facts

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Emerson Electric (EMR - Free Report) closed at $88.45 in the latest trading session, marking a +0.48% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.2% for the day. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 1.16%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 8.84% in the past month. In that same time, the Industrial Products sector lost 6.12%, while the S&P 500 lost 3.58%.

Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2023. The company is predicted to post an EPS of $1.30, indicating a 15.03% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.2 billion, reflecting a 21.56% fall from the equivalent quarter last year.

Investors should also pay attention to any latest changes in 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.59% higher. Emerson Electric currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Emerson Electric is presently being traded at a Forward P/E ratio of 17.68. This expresses a discount compared to the average Forward P/E of 19.1 of its industry.

Meanwhile, EMR's PEG ratio is currently 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.95.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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