In the latest market close, Emerson Electric (EMR – Free Report) reached $126.39, with a +0.13% movement compared to the previous day. The stock outpaced the S&P 500’s daily loss of 0.04%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 4.8% over the course of the past month, outperforming the Industrial Products sector’s loss of 8.42% and lagging the S&P 500’s gain of 1.05%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company’s upcoming EPS is projected at $1.28, signifying a 4.92% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.23 billion, indicating a 2.81% upward movement from the same quarter last year.
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.
It is also important to note the recent changes to analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% lower. Emerson Electric is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 21.26 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 22.96.
Investors should also note that EMR has a PEG ratio of 2.12 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As the market closed yesterday, the Manufacturing – Electronics industry was having an average PEG ratio of 2.09.
The Manufacturing – Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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