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Here's Why Emerson Electric (EMR) Gained But Lagged the Market Today
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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $147.40, marking a +1.08% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.69%.
The stock of maker of process controls systems, valves and analytical instruments has fallen by 7.47% in the past month, lagging the Industrial Products sector's loss of 7.18% and the S&P 500's loss of 2.85%.
Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. On that day, Emerson Electric is projected to report earnings of $1.84 per share, which would represent year-over-year growth of 13.58%. Meanwhile, our latest consensus estimate is calling for revenue of $5.1 billion, up 5.1% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and revenue of $18.89 billion, which would represent changes of +9.17% and +4.85%, respectively, from the prior year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 22.44. This expresses a discount compared to the average Forward P/E of 24.04 of its industry.
It's also important to note that EMR currently trades at a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.59.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Here's Why Emerson Electric (EMR) Gained But Lagged the Market Today
In the latest trading session, Emerson Electric (EMR - Free Report) closed at $147.40, marking a +1.08% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.69%.
The stock of maker of process controls systems, valves and analytical instruments has fallen by 7.47% in the past month, lagging the Industrial Products sector's loss of 7.18% and the S&P 500's loss of 2.85%.
Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. On that day, Emerson Electric is projected to report earnings of $1.84 per share, which would represent year-over-year growth of 13.58%. Meanwhile, our latest consensus estimate is calling for revenue of $5.1 billion, up 5.1% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and revenue of $18.89 billion, which would represent changes of +9.17% and +4.85%, respectively, from the prior year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 22.44. This expresses a discount compared to the average Forward P/E of 24.04 of its industry.
It's also important to note that EMR currently trades at a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.59.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.