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Emerson Electric (EMR) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $128.68, marking a +2.5% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Shares of the maker of process controls systems, valves and analytical instruments have appreciated by 4.09% over the course of the past month, outperforming the Industrial Products sector's loss of 0.78%, and the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is expected to report EPS of $1.51, up 5.59% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 4.26% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6 per share and revenue of $18.06 billion, indicating changes of +9.29% and +3.26%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 0.31% rise in the Zacks Consensus EPS estimate. Emerson Electric is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 20.92. This denotes a discount relative to the industry average Forward P/E of 22.62.
It is also worth noting that EMR currently has a PEG ratio of 2.48. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.84.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Emerson Electric (EMR) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Emerson Electric (EMR - Free Report) closed at $128.68, marking a +2.5% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Shares of the maker of process controls systems, valves and analytical instruments have appreciated by 4.09% over the course of the past month, outperforming the Industrial Products sector's loss of 0.78%, and the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is expected to report EPS of $1.51, up 5.59% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 4.26% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6 per share and revenue of $18.06 billion, indicating changes of +9.29% and +3.26%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 0.31% rise in the Zacks Consensus EPS estimate. Emerson Electric is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 20.92. This denotes a discount relative to the industry average Forward P/E of 22.62.
It is also worth noting that EMR currently has a PEG ratio of 2.48. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.84.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.