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Emerson Electric (EMR) Stock Moves -1.84%: What You Should Know

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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $87.33, marking a -1.84% move from the previous day. This change was narrower than the S&P 500's 2.45% loss on the day. Meanwhile, the Dow lost 1.75%, and the Nasdaq, a tech-heavy index, lost 3.52%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 11.88% in the past month. In that same time, the Industrial Products sector gained 4.28%, while the S&P 500 gained 2.32%.

EMR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.35 billion, up 4.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $17.86 billion, which would represent changes of +7.23% and +6.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for EMR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.38% higher. EMR currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that EMR has a Forward P/E ratio of 23.97 right now. For comparison, its industry has an average Forward P/E of 24.83, which means EMR is trading at a discount to the group.

We can also see that EMR currently has a PEG ratio of 2.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics industry currently had an average PEG ratio of 2.09 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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