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Why Emerson Electric (EMR) Outpaced the Stock Market Today
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In the latest close session, Emerson Electric (EMR - Free Report) was up +1.74% at $161.83. This move outpaced the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.
The stock of maker of process controls systems, valves and analytical instruments has risen by 7.2% in the past month, leading the Industrial Products sector's loss of 2.62% and the S&P 500's gain of 1.34%.
Analysts and investors alike will be keeping a close eye on 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, the Zacks Consensus Estimate for revenue is projecting net sales of $5.1 billion, up 5.15% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and revenue of $18.9 billion, which would represent changes of +9.17% and +4.9%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% higher. Emerson Electric presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 22.06. This represents a discount compared to its industry average Forward P/E of 24.5.
One should further note that EMR currently holds a PEG ratio of 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
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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Why Emerson Electric (EMR) Outpaced the Stock Market Today
In the latest close session, Emerson Electric (EMR - Free Report) was up +1.74% at $161.83. This move outpaced the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.
The stock of maker of process controls systems, valves and analytical instruments has risen by 7.2% in the past month, leading the Industrial Products sector's loss of 2.62% and the S&P 500's gain of 1.34%.
Analysts and investors alike will be keeping a close eye on 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, the Zacks Consensus Estimate for revenue is projecting net sales of $5.1 billion, up 5.15% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and revenue of $18.9 billion, which would represent changes of +9.17% and +4.9%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% higher. Emerson Electric presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 22.06. This represents a discount compared to its industry average Forward P/E of 24.5.
One should further note that EMR currently holds a PEG ratio of 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
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.