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Emerson Electric (EMR) Outperforms Broader Market: What You Need to Know

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Emerson Electric (EMR - Free Report) closed the most recent trading day at $133.67, moving +1.23% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 0.68% in the past month. In that same time, the Industrial Products sector lost 0.06%, while the S&P 500 gained 2.09%.

Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.62, marking a 9.46% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.9 billion, up 6.05% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6 per share and revenue of $18.06 billion, which would represent changes of +9.29% and +3.27%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications 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 business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.14% increase. As of now, Emerson Electric holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Emerson Electric is currently exchanging hands at a Forward P/E ratio of 22. This indicates a discount in contrast to its industry's Forward P/E of 23.93.

It is also worth noting that EMR currently has a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.83.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.

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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