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Emerson Electric (EMR) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $130.11, marking a -1.56% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.93%.

Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 0.54% over the past month, lagging the Industrial Products sector's gain of 1.64% and the S&P 500's gain of 1.13%.

Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. 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. Meanwhile, our latest consensus estimate is calling for revenue of $4.88 billion, up 5.74% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6 per share and revenue of $18.04 billion, which would represent changes of +9.29% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates 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 business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. As of now, Emerson Electric holds a Zacks Rank of #3 (Hold).

In the context of valuation, Emerson Electric is at present trading with a Forward P/E ratio of 20.33. This valuation marks a discount compared to its industry average Forward P/E of 24.34.

Also, we should mention that EMR has a PEG ratio of 2.29. 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 the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.97.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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