In the latest trading session, Emerson Electric (EMR) closed at $129.02, marking a -4.9% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 2.91% in the past month. In that same time, the Industrial Products sector gained 1.77%, while the S&P 500 gained 2.71%.
Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. In that report, analysts expect Emerson Electric to post earnings of $1.62 per share. This would mark year-over-year growth of 9.46%. In the meantime, our current consensus estimate forecasts the revenue to be $4.9 billion, indicating a 6.05% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6 per share and a revenue of $18.06 billion, demonstrating changes of +9.29% and +3.27%, respectively, from the preceding year.
Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 22.6. Its industry sports an average Forward P/E of 22.86, so one might conclude that Emerson Electric is trading at a discount comparatively.
It's also important to note that EMR currently trades at a PEG ratio of 2.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. EMR's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Emerson Electric Co. (EMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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