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Emerson Electric (EMR) Stock Drops Despite Market Gains: Important Facts to Note

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Emerson Electric (EMR - Free Report) closed the latest trading day at $108.26, indicating a -0.23% change from the previous session's end. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw a downswing of 0.33%, while the tech-heavy Nasdaq appreciated by 0.76%.

Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 3.94% over the past month, outpacing the Industrial Products sector's loss of 1.98% and the S&P 500's gain of 1.47% in that time.

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 5, 2024. 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%. Alongside, our most recent consensus estimate is anticipating revenue of $4.58 billion, indicating a 11.88% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 past month, there's been a 0.87% fall in the Zacks Consensus EPS estimate. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 18.3. This represents a discount compared to its industry's average Forward P/E of 22.34.

We can additionally observe that EMR currently boasts a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. EMR's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 173, finds itself in the bottom 32% echelons 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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