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Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
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Emerson Electric (EMR - Free Report) closed the most recent trading day at $91.62, moving +1.55% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 9.7%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had lost 6.13% over the past month. This has lagged the Industrial Products sector's gain of 6.58% and the S&P 500's gain of 6.27% in that time.
Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. This is expected to be February 8, 2023. The company is expected to report EPS of $0.88, down 16.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.47 billion, down 22.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $14.89 billion, which would represent changes of -22.29% and -24.14%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 22.11. For comparison, its industry has an average Forward P/E of 21.4, which means Emerson Electric is trading at a premium to the group.
We can also see that EMR currently has a PEG ratio of 2.6. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.36 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
Emerson Electric (EMR - Free Report) closed the most recent trading day at $91.62, moving +1.55% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 9.7%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had lost 6.13% over the past month. This has lagged the Industrial Products sector's gain of 6.58% and the S&P 500's gain of 6.27% in that time.
Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. This is expected to be February 8, 2023. The company is expected to report EPS of $0.88, down 16.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.47 billion, down 22.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $14.89 billion, which would represent changes of -22.29% and -24.14%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 22.11. For comparison, its industry has an average Forward P/E of 21.4, which means Emerson Electric is trading at a premium to the group.
We can also see that EMR currently has a PEG ratio of 2.6. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.36 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.