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Emerson Electric (EMR) Stock Sinks As Market Gains: Here's Why

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Emerson Electric (EMR - Free Report) ended the recent trading session at $147.68, demonstrating a -1.72% change from the preceding day's closing price. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 10.24% in the past month. In that same time, the Industrial Products sector gained 7.83%, while the S&P 500 gained 0.6%.

The upcoming earnings release of Emerson Electric will be of great interest to investors. The company's earnings report is expected on February 3, 2026. On that day, Emerson Electric is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 2.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.35 billion, indicating a 4.22% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.48 per share and a revenue of $18.86 billion, representing changes of +8% and +4.71%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% higher. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 23.18. This expresses a discount compared to the average Forward P/E of 23.19 of its industry.

It is also worth noting that EMR currently has a PEG ratio of 2.43. 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. EMR's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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