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Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $95.69, marking a +1.83% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 4.31% in the past month. In that same time, the Industrial Products sector lost 4.14%, while the S&P 500 lost 1.42%.
Emerson Electric will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $1.18, up 21.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.71 billion, up 6.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $19.49 billion. These totals would mark changes of +21.46% and +6.87%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.23% lower. Emerson Electric is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 18.87. For comparison, its industry has an average Forward P/E of 19.21, which means Emerson Electric is trading at a discount to the group.
Investors should also note that EMR has a PEG ratio of 2.16 right now. 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. EMR's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Emerson Electric (EMR - Free Report) closed at $95.69, marking a +1.83% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 4.31% in the past month. In that same time, the Industrial Products sector lost 4.14%, while the S&P 500 lost 1.42%.
Emerson Electric will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $1.18, up 21.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.71 billion, up 6.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $19.49 billion. These totals would mark changes of +21.46% and +6.87%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.23% lower. Emerson Electric is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 18.87. For comparison, its industry has an average Forward P/E of 19.21, which means Emerson Electric is trading at a discount to the group.
Investors should also note that EMR has a PEG ratio of 2.16 right now. 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. EMR's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.