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Here's Why You Should Hold on to Emerson (EMR) Stock Now
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Emerson Electric Co. (EMR - Free Report) is backed by multiple tailwinds despite headwinds from logistics and labor constraints and adverse foreign currency movements.
This Zacks Rank #3 (Hold) company is benefiting from higher volumes and accretive pricing. Within the Intelligent Devices business unit, EMR is seeing underlying sales growth in the Americas region. The AspenTech acquisition and strength in the process end markets are driving the growth of the Software and Control business group.
The company’s buyout of Fluxa (July 2022) has enabled Emerson to leverage the former’s PKM software, its DeltaV control system and life sciences automation software to provide customers with a comprehensive line of solutions for developing new drugs. In May 2022, Emerson merged its industrial software businesses — OSI Inc. and its Geological Simulation Software — with Aspen Technology to create “AspenTech”. The merger, in which the company has majority ownership, enabled it to gain control over a high-valued pure-play industrial software leader, expedite its software strategy and realize substantial synergies.
As part of its restructuring actions, Emerson has lately been aiming to divest non-core/non-profitable businesses. In November 2022, the company completed the divestment of its InSinkErator business to Whirlpool. The divestiture helps the company divert resources to key growth areas. In October 2022, the company divested a majority stake in its Climate Technologies business. The divestment allows the company to become a pure-play global automation company. In the first quarter of fiscal 2023 (ended Dec 31, 2022), the company also exited its Russia business operations.
Emerson’s efforts to reward its shareholders through dividend payments and share repurchases are noteworthy. In fiscal 2022 (ended September 2022), the company paid out dividends of $1,223 million and bought back shares worth $500 million. It is worth noting that in October 2022, it hiked the quarterly dividend rate by 1%. In the first quarter of fiscal 2023, the company paid dividends of $308 million and bought back shares worth $2 billion.
Stocks to Consider
Some top-ranked stocks from the Industrial Products sector are discussed below:
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 1.7% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 25.6% in the past six months.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 3.2%, on average.
In the past 60 days, estimates for A. O. Smith’s 2023 earnings have increased 1.2%. The stock has gained 31% in the past six months.
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Here's Why You Should Hold on to Emerson (EMR) Stock Now
Emerson Electric Co. (EMR - Free Report) is backed by multiple tailwinds despite headwinds from logistics and labor constraints and adverse foreign currency movements.
This Zacks Rank #3 (Hold) company is benefiting from higher volumes and accretive pricing. Within the Intelligent Devices business unit, EMR is seeing underlying sales growth in the Americas region. The AspenTech acquisition and strength in the process end markets are driving the growth of the Software and Control business group.
The company’s buyout of Fluxa (July 2022) has enabled Emerson to leverage the former’s PKM software, its DeltaV control system and life sciences automation software to provide customers with a comprehensive line of solutions for developing new drugs. In May 2022, Emerson merged its industrial software businesses — OSI Inc. and its Geological Simulation Software — with Aspen Technology to create “AspenTech”. The merger, in which the company has majority ownership, enabled it to gain control over a high-valued pure-play industrial software leader, expedite its software strategy and realize substantial synergies.
As part of its restructuring actions, Emerson has lately been aiming to divest non-core/non-profitable businesses. In November 2022, the company completed the divestment of its InSinkErator business to Whirlpool. The divestiture helps the company divert resources to key growth areas. In October 2022, the company divested a majority stake in its Climate Technologies business. The divestment allows the company to become a pure-play global automation company. In the first quarter of fiscal 2023 (ended Dec 31, 2022), the company also exited its Russia business operations.
Emerson Electric Co. Price and Consensus
Emerson Electric Co. price-consensus-chart | Emerson Electric Co. Quote
Emerson’s efforts to reward its shareholders through dividend payments and share repurchases are noteworthy. In fiscal 2022 (ended September 2022), the company paid out dividends of $1,223 million and bought back shares worth $500 million. It is worth noting that in October 2022, it hiked the quarterly dividend rate by 1%. In the first quarter of fiscal 2023, the company paid dividends of $308 million and bought back shares worth $2 billion.
Stocks to Consider
Some top-ranked stocks from the Industrial Products sector are discussed below:
Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 1.7% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 25.6% in the past six months.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 3.2%, on average.
In the past 60 days, estimates for A. O. Smith’s 2023 earnings have increased 1.2%. The stock has gained 31% in the past six months.