In the latest market close, Emerson Electric (EMR – Free Report) reached $122.18, with a -1.41% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 7.74% over the course of the past month, outperforming the Industrial Products sector’s loss of 9.8% and lagging the S&P 500’s loss of 2.36%.
Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company’s upcoming EPS is projected at $1.28, signifying a 4.92% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.23 billion, up 2.81% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.94 per share and a revenue of $18.17 billion, demonstrating changes of +8.2% and +3.86%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.88 right now. This signifies a discount in comparison to the average Forward P/E of 21.64 for its industry.
Investors should also note that EMR has a PEG ratio of 2.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Manufacturing – Electronics industry stood at 1.79 at the close of the market yesterday.
The Manufacturing – Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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