Back to top

Image: Bigstock

Emerson Electric (EMR) Stock Moves -0.02%: What You Should Know

Read MoreHide Full Article

Emerson Electric (EMR - Free Report) closed at $122.35 in the latest trading session, marking a -0.02% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.1%.

The the stock of maker of process controls systems, valves and analytical instruments has fallen by 5.21% in the past month, lagging the Industrial Products sector's loss of 4.58% and the S&P 500's loss of 0.29%.

Market participants will be closely following the financial results of Emerson Electric in its upcoming release. In that report, analysts expect Emerson Electric to post earnings of $1.28 per share. This would mark year-over-year growth of 4.92%. Alongside, our most recent consensus estimate is anticipating revenue of $4.23 billion, indicating a 2.81% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.94 per share and revenue of $18.17 billion, indicating changes of +8.2% and +3.86%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% decrease. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Emerson Electric is at present trading with a Forward P/E ratio of 20.62. Its industry sports an average Forward P/E of 22.67, so one might conclude that Emerson Electric is trading at a discount comparatively.

It's also important to note that EMR currently trades at a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Electronics was holding an average PEG ratio of 2.06 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 42% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Emerson Electric Co. (EMR) - free report >>

Published in