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Emerson Electric (EMR) Declines More Than Market: Some Information for Investors

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In the latest close session, Emerson Electric (EMR - Free Report) was down 2.38% at $142.15. This move lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.

The stock of maker of process controls systems, valves and analytical instruments has risen by 7.67% in the past month, leading the Industrial Products sector's gain of 3.18% and the S&P 500's gain of 1.19%.

The upcoming earnings release of Emerson Electric will be of great interest to investors. In that report, analysts expect Emerson Electric to post earnings of $1.41 per share. This would mark year-over-year growth of 2.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.34 billion, indicating a 4.05% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.44 per share and revenue of $18.87 billion, indicating changes of +7.33% and +4.76%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Emerson Electric currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Emerson Electric is presently being traded at a Forward P/E ratio of 22.61. This valuation marks a discount compared to its industry average Forward P/E of 23.63.

We can also see that EMR currently has a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.79.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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