Back to top

Image: Bigstock

Emerson Electric (EMR) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

Emerson Electric (EMR - Free Report) ended the recent trading session at $151.81, demonstrating a +1.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.

The maker of process controls systems, valves and analytical instruments's stock has climbed by 4.54% in the past month, exceeding the Industrial Products sector's loss of 3.42% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. In that report, analysts expect Emerson Electric to post earnings of $1.68 per share. This would mark year-over-year growth of 10.53%. In the meantime, our current consensus estimate forecasts the revenue to be $4.79 billion, indicating a 5.3% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.49 per share and a revenue of $18.79 billion, indicating changes of +8.17% and +4.28%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Emerson Electric is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 23.01. This represents a discount compared to its industry average Forward P/E of 23.59.

Investors should also note that EMR has a PEG ratio of 2.39 right now. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

Published in