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Emerson Electric (EMR) Declines More Than Market: Some Information for Investors
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Emerson Electric (EMR - Free Report) closed at $135.38 in the latest trading session, marking a -2.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The maker of process controls systems, valves and analytical instruments's stock has dropped by 2.93% in the past month, falling short of the Industrial Products sector's gain of 5.3% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is expected to report EPS of $1.68, up 10.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.8 billion, up 5.48% from the year-ago period.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $6.49 per share and revenue of $18.81 billion. These results would represent year-over-year changes of +8.17% and +4.41%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Emerson Electric presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 21.4. Its industry sports an average Forward P/E of 22.61, so one might conclude that Emerson Electric is trading at a discount comparatively.
One should further note that EMR currently holds a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.68.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 33% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Emerson Electric (EMR) Declines More Than Market: Some Information for Investors
Emerson Electric (EMR - Free Report) closed at $135.38 in the latest trading session, marking a -2.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The maker of process controls systems, valves and analytical instruments's stock has dropped by 2.93% in the past month, falling short of the Industrial Products sector's gain of 5.3% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is expected to report EPS of $1.68, up 10.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.8 billion, up 5.48% from the year-ago period.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $6.49 per share and revenue of $18.81 billion. These results would represent year-over-year changes of +8.17% and +4.41%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Emerson Electric presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 21.4. Its industry sports an average Forward P/E of 22.61, so one might conclude that Emerson Electric is trading at a discount comparatively.
One should further note that EMR currently holds a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.68.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 33% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.