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Emerson Electric (EMR) Gains But Lags Market: What You Should Know
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Emerson Electric (EMR - Free Report) closed at $84.55 in the latest trading session, marking a +0.79% move from the prior day. This move lagged the S&P 500's daily gain of 1.63%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 0.3%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 14.7% in the past month. In that same time, the Industrial Products sector gained 6.37%, while the S&P 500 gained 2.94%.
Investors will be hoping for strength from Emerson Electric as it approaches its next earnings release, which is expected to be November 2, 2022. In that report, analysts expect Emerson Electric to post earnings of $1.39 per share. This would mark year-over-year growth of 14.88%. Meanwhile, our latest consensus estimate is calling for revenue of $5.34 billion, up 8.03% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.13% higher. 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 15.46. For comparison, its industry has an average Forward P/E of 18.75, which means Emerson Electric is trading at a discount to the group.
We can also see that EMR currently has a PEG ratio of 1.84. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.
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Emerson Electric (EMR) Gains But Lags Market: What You Should Know
Emerson Electric (EMR - Free Report) closed at $84.55 in the latest trading session, marking a +0.79% move from the prior day. This move lagged the S&P 500's daily gain of 1.63%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 0.3%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 14.7% in the past month. In that same time, the Industrial Products sector gained 6.37%, while the S&P 500 gained 2.94%.
Investors will be hoping for strength from Emerson Electric as it approaches its next earnings release, which is expected to be November 2, 2022. In that report, analysts expect Emerson Electric to post earnings of $1.39 per share. This would mark year-over-year growth of 14.88%. Meanwhile, our latest consensus estimate is calling for revenue of $5.34 billion, up 8.03% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.13% higher. 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 15.46. For comparison, its industry has an average Forward P/E of 18.75, which means Emerson Electric is trading at a discount to the group.
We can also see that EMR currently has a PEG ratio of 1.84. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.