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Emerson Electric (EMR) Stock Moves -0.7%: What You Should Know
Emerson Electric (EMR - Free Report) closed the most recent trading day at $83.40, moving -0.7% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.63%, and the tech-heavy Nasdaq lost 6.65%.
Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 2.36% over the past month, outpacing the Industrial Products sector's loss of 3.09% and the S&P 500's gain of 0.3% in that time.
Emerson Electric will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.97, down 24.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.65 billion, down 23.85% from the prior-year quarter.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $14.96 billion. These results would represent year-over-year changes of -22.48% and -23.76%, respectively.
Investors should also note any recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Emerson Electric currently has a Zacks Rank of #3 (Hold).
Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 20.62. Its industry sports an average Forward P/E of 20.25, so we one might conclude that Emerson Electric is trading at a premium comparatively.
Investors should also note that EMR has a PEG ratio of 2.43 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.