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Emerson Electric (EMR) Flat As Market Sinks: What You Should Know

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Emerson Electric (EMR - Free Report) closed at $110.88 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500's 0.21% loss on the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.

Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 10.98% over the past month, outpacing the Industrial Products sector's gain of 8.18% and the S&P 500's gain of 5.94% in that time.

The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. In that report, analysts expect Emerson Electric to post earnings of $1.47 per share. This would mark year-over-year growth of 13.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.59 billion, up 12.12% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.61% decrease. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 18.65. This denotes a discount relative to the industry's average Forward P/E of 23.17.

Meanwhile, EMR's PEG ratio is currently 1.7. 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. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 2.07.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 61, this industry ranks in the top 25% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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