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Here's Why Emerson Electric (EMR) Fell More Than Broader Market
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Emerson Electric (EMR - Free Report) closed at $159.22 in the latest trading session, marking a -1.35% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the maker of process controls systems, valves and analytical instruments have appreciated by 6.08% over the course of the past month, outperforming the Industrial Products sector's gain of 0.98%, and the S&P 500's gain of 1.4%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $5.1 billion, indicating a 5.15% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.55 per share and a revenue of $18.89 billion, demonstrating changes of +9.17% and +4.86%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% increase. Currently, Emerson Electric is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Emerson Electric is at present trading with a Forward P/E ratio of 22.39. This valuation marks a discount compared to its industry average Forward P/E of 24.29.
Meanwhile, EMR's PEG ratio is currently 2.23. 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. The Manufacturing - Electronics industry had an average PEG ratio of 1.55 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Emerson Electric (EMR) Fell More Than Broader Market
Emerson Electric (EMR - Free Report) closed at $159.22 in the latest trading session, marking a -1.35% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the maker of process controls systems, valves and analytical instruments have appreciated by 6.08% over the course of the past month, outperforming the Industrial Products sector's gain of 0.98%, and the S&P 500's gain of 1.4%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $5.1 billion, indicating a 5.15% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.55 per share and a revenue of $18.89 billion, demonstrating changes of +9.17% and +4.86%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% increase. Currently, Emerson Electric is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Emerson Electric is at present trading with a Forward P/E ratio of 22.39. This valuation marks a discount compared to its industry average Forward P/E of 24.29.
Meanwhile, EMR's PEG ratio is currently 2.23. 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. The Manufacturing - Electronics industry had an average PEG ratio of 1.55 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.