Emerson Electric Co. (EMR - Free Report) recently expanded its Plantweb digital ecosystem portfolio, with the launch of the Location Awareness technology. This economic and secure solution is likely to improve the industrial safety of workers in chemical plants, refineries, as well as oil and gas platforms.
In addition to this, the company has also successfully acquired HTE Engineering Services Ltd. (“HTE”), for an undisclosed amount, in a bid to strengthen its existing Branson plastic-joining portfolio.
Inside the Headlines
Emerson’s believes its new Location Awareness technology will be able to significantly leverage existing wireless infrastructure of industrial companies. It will assist in reducing more than 70% frequent personnel-recordable incidents. Location Awareness will provide snapshots of employee locations to the managers via rechargeable wearable tags. These snapshots can be used for safety muster and will also aid in lowering man-down events. Location Awareness is the first personnel-safety technology in the market, equipped with the WirelessHART infrastructure. Installation of this innovate technology will call for relatively lesser time and cost than the existing alternatives.
On the other hand, the recently acquired HTE assets will be included in Emerson’s Assembly Technologies business, hence, grouped under its Automation Solutions business segment. Winning over HTE’s state-of-the-art heat-staking technologies and applications, Emerson intends to provide advanced material joining applications and solutions to customers across major end-markets like packaging, medical equipment and automotive assembly.
Over the past three months, Emerson’s shares have rallied 13.5%, outperforming 9.2% growth recorded by the industry it belongs to.
This Zacks Rank #2 (Buy) stock is poised to grow on the back of solid end-market sales, strategic restructuring moves and diligent cost-reduction initiatives.
Over the past 60 days, the Zacks Consensus Estimate for the company’s earnings has moved north for fiscal 2019 (ending September 2019). Per our estimates, Emerson’s year-over-year earnings and sales growth is pegged at 18.1% and 10.7%, respectively, for fiscal 2019. Also, the company’s earnings per share are predicted to be up 10% in the next three to five years.
Other Stocks to Consider
Some other top-ranked stocks in the same space are listed below:
Eaton Corporation plc (ETN - Free Report) carries a Zacks Rank #2. The company pulled off an average positive earnings surprise of 2.87% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ideal Power Inc. also holds a Zacks Rank of 2. The company delivered an average positive earnings surprise of 18.09% in the trailing four quarters.
Regal Beloit Corporation (RBC - Free Report) is another Zacks #2 Ranked company. It came up with an average positive earnings surprise of 1.25% during the same time frame.
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