We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Emerson Stands on Solid Footing Across Markets Amid Risks
Read MoreHide Full Article
On Apr 9, we issued an updated research report on Emerson Electric Company (EMR - Free Report) .
Over the past three months, this Zacks Rank #3 (Hold) stock has yielded a return of 16.8% compared with industry’s rally of 10.1%.
Existing Scenario
Emerson believes broad based demand across key markets, strong Maintenance, Repair and Operations projects as well as ongoing small to mid-sized brownfield and expansion projects will drive its Automation Solutions segment’s revenues. In addition, the company’s Commercial & Residential Solutions business revenues are likely to be boosted by continued robust demand in residential air conditioning and professional tools markets. For fiscal 2019 (ending September 2019), it expects net sales to increase 7-10%, with underlying sales to be up 4-7%.
Moreover, the company believes that lower tax expenses and greater operational efficiencies will boost its profitability in the coming quarters. Also, in February 2019, Emerson completed the acquisition of Intelligent Platforms from General Electric Company (GE - Free Report) . Notably, with the addition of Intelligent Platforms programmable logic controller technologies, Emerson expanded its capabilities in machine control and discrete applications.
In addition, the company remains highly committed toward increasing shareholders’ wealth through share repurchase programs and dividends. In this regard, it repurchased around $800 million shares in the fiscal first quarter (ended December 2018), apart from providing regularly quarterly dividends. Going forward, Emerson intends to provide higher returns on the back of stronger free cash flow generation.
However, material cost inflation has been a major cause of concern for the company over the past few quarters. In the fiscal first quarter, unfavorable mix and material inflation hurt margins of the Commercial & Residential Solutions segment by around 50 basis points. It expects inflation environment to persist in the quarters ahead.
iRobot delivered average earnings surprise of 92.23% in the trailing four reported quarters.
Regal Beloit pulled off average positive earnings surprise of 4.27% in the previous four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Emerson Stands on Solid Footing Across Markets Amid Risks
On Apr 9, we issued an updated research report on Emerson Electric Company (EMR - Free Report) .
Over the past three months, this Zacks Rank #3 (Hold) stock has yielded a return of 16.8% compared with industry’s rally of 10.1%.
Existing Scenario
Emerson believes broad based demand across key markets, strong Maintenance, Repair and Operations projects as well as ongoing small to mid-sized brownfield and expansion projects will drive its Automation Solutions segment’s revenues. In addition, the company’s Commercial & Residential Solutions business revenues are likely to be boosted by continued robust demand in residential air conditioning and professional tools markets. For fiscal 2019 (ending September 2019), it expects net sales to increase 7-10%, with underlying sales to be up 4-7%.
Moreover, the company believes that lower tax expenses and greater operational efficiencies will boost its profitability in the coming quarters. Also, in February 2019, Emerson completed the acquisition of Intelligent Platforms from General Electric Company (GE - Free Report) . Notably, with the addition of Intelligent Platforms programmable logic controller technologies, Emerson expanded its capabilities in machine control and discrete applications.
In addition, the company remains highly committed toward increasing shareholders’ wealth through share repurchase programs and dividends. In this regard, it repurchased around $800 million shares in the fiscal first quarter (ended December 2018), apart from providing regularly quarterly dividends. Going forward, Emerson intends to provide higher returns on the back of stronger free cash flow generation.
However, material cost inflation has been a major cause of concern for the company over the past few quarters. In the fiscal first quarter, unfavorable mix and material inflation hurt margins of the Commercial & Residential Solutions segment by around 50 basis points. It expects inflation environment to persist in the quarters ahead.
Stocks to Consider
A couple of better-ranked stocks from Zacks Industrial Products sector are iRobot Corporation (IRBT - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While iRobot sports a Zacks Rank #1 (Strong Buy), Regal Beloit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
iRobot delivered average earnings surprise of 92.23% in the trailing four reported quarters.
Regal Beloit pulled off average positive earnings surprise of 4.27% in the previous four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>