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Emerson Electric (EMR) Registers a Bigger Fall Than the Market: Important Facts to Note

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Emerson Electric (EMR - Free Report) closed the most recent trading day at $112.08, moving -1.33% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 5.23% in the past month. In that same time, the Industrial Products sector lost 2.56%, while the S&P 500 lost 4.03%.

The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. On that day, Emerson Electric is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 3.68%. Alongside, our most recent consensus estimate is anticipating revenue of $4.38 billion, indicating a 0.14% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.97 per share and a revenue of $17.86 billion, signifying shifts of +8.74% and +2.12%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. Right now, Emerson Electric possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Emerson Electric is currently exchanging hands at a Forward P/E ratio of 19.02. This valuation marks a discount compared to its industry's average Forward P/E of 20.38.

It is also worth noting that EMR currently has a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Electronics industry had an average PEG ratio of 1.78 as trading concluded yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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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