Emerson Electric (EMR – Free Report) ended the recent trading session at $113.11, demonstrating a +1.17% swing from the preceding day’s closing price. The stock outpaced the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.
Shares of the maker of process controls systems, valves and analytical instruments witnessed a loss of 10.38% over the previous month, trailing the performance of the Industrial Products sector with its loss of 5.98% and the S&P 500’s loss of 7.33%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is expected to report EPS of $1.41, up 3.68% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.38 billion, reflecting a 0.14% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.97 per share and a revenue of $17.86 billion, indicating changes of +8.74% and +2.12%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has shifted 0.2% upward. Right now, Emerson Electric possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 18.72. This indicates a discount in contrast to its industry’s Forward P/E of 23.76.
It is also worth noting that EMR currently has a PEG ratio of 2.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Manufacturing – Electronics stocks are, on average, holding a PEG ratio of 1.93 based on yesterday’s closing prices.
The Manufacturing – Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 47, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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