We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Emerson's iSolutions Buyout to Fortify Consultancy Business
Read MoreHide Full Article
Emerson Electric Co. (EMR - Free Report) recently completed the acquisition of iSolutions Inc., for an undisclosed amount. The company noted that the buyout will significantly aid in boosting its digital transformation expertise and consultancy business.
Emerson’s share price remained nearly flat at $62.28 per share as of Dec 11, 2018, post broadcast of the deal’s closure news on Dec 10.
Inside the Headlines
iSolutions is a renowned Canada-based consulting group, providing state-of-the-art data management and designing solutions in the market. The decision-support tools of the company support execution of data-driven operational and production decisions that are based on the evaluation of real-time insights from plant systems and integrated field. The non-imitable solutions of iSolutions are largely popular across the oil and gas, and utilities end-markets North American power.
Inclusion of iSolutions’ expertise will help Emersion expedite the digital transformation deployments and roadmap implementation across organizations. Its customers will be able to realize quicker return on technology investments and secure Top Quartile performance in the areas of energy consumption, production, reliability and safety. In short, iSolutions’ unique information technology/operational technology (IT-OT) will support the integration of data from the plant floor to the different business systems of the organizations.
Moreover, the data-management practices of iSolutions (for discrete, hybrid and process businesses) are likely to strengthen Emerson’s Operational Certainty Consulting services. Going forward, iSolutions (on behalf of Emerson) will assist organizations in deploying Emerson’s industry popular Plantweb™ digital ecosystem.
Our Take
Emerson currently carries a Zacks Rank #4 (Sell). Over the past month, the stock has lost 5.6%, wider than the 4.3% loss recorded by the industry it belongs to.
The company is currently battling inflation. Material price inflation — on account of tariffs imposed over U.S. imports — is expected to escalate the company’s aggregate cost, in turn dampening its margins in the upcoming quarters. Moreover, a stronger U.S. dollar has been hurting the company’s international revenues and profitability. Also, we notice that Emerson’s cash position has weakened over time. In the last six years (2012-20817), its cash and cash equivalents went down 16.7% (CAGR).
Enersys (ENS - Free Report) carries a Zacks Rank #2 (Buy). The company delivered a positive average earnings surprise of 2.83% in the trailing four quarters.
Applied Industrial Technologies, Inc. (AIT - Free Report) also holds a Zacks Rank of 2. The company generated a positive average earnings surprise of 11.67% in the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Emerson's iSolutions Buyout to Fortify Consultancy Business
Emerson Electric Co. (EMR - Free Report) recently completed the acquisition of iSolutions Inc., for an undisclosed amount. The company noted that the buyout will significantly aid in boosting its digital transformation expertise and consultancy business.
Emerson’s share price remained nearly flat at $62.28 per share as of Dec 11, 2018, post broadcast of the deal’s closure news on Dec 10.
Inside the Headlines
iSolutions is a renowned Canada-based consulting group, providing state-of-the-art data management and designing solutions in the market. The decision-support tools of the company support execution of data-driven operational and production decisions that are based on the evaluation of real-time insights from plant systems and integrated field. The non-imitable solutions of iSolutions are largely popular across the oil and gas, and utilities end-markets North American power.
Inclusion of iSolutions’ expertise will help Emersion expedite the digital transformation deployments and roadmap implementation across organizations. Its customers will be able to realize quicker return on technology investments and secure Top Quartile performance in the areas of energy consumption, production, reliability and safety. In short, iSolutions’ unique information technology/operational technology (IT-OT) will support the integration of data from the plant floor to the different business systems of the organizations.
Moreover, the data-management practices of iSolutions (for discrete, hybrid and process businesses) are likely to strengthen Emerson’s Operational Certainty Consulting services. Going forward, iSolutions (on behalf of Emerson) will assist organizations in deploying Emerson’s industry popular Plantweb™ digital ecosystem.
Our Take
Emerson currently carries a Zacks Rank #4 (Sell). Over the past month, the stock has lost 5.6%, wider than the 4.3% loss recorded by the industry it belongs to.
The company is currently battling inflation. Material price inflation — on account of tariffs imposed over U.S. imports — is expected to escalate the company’s aggregate cost, in turn dampening its margins in the upcoming quarters. Moreover, a stronger U.S. dollar has been hurting the company’s international revenues and profitability. Also, we notice that Emerson’s cash position has weakened over time. In the last six years (2012-20817), its cash and cash equivalents went down 16.7% (CAGR).
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
DXP Enterprises, Inc. (DXPE - Free Report) sports a Zacks Rank #1 (Strong Buy). The company pulled off a positive average earnings surprise of 112.62% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enersys (ENS - Free Report) carries a Zacks Rank #2 (Buy). The company delivered a positive average earnings surprise of 2.83% in the trailing four quarters.
Applied Industrial Technologies, Inc. (AIT - Free Report) also holds a Zacks Rank of 2. The company generated a positive average earnings surprise of 11.67% in the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>