In the latest trading session, Emerson Electric (EMR) closed at $133.05, marking a +1.42% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.39%.
The maker of process controls systems, valves and analytical instruments's shares have seen an increase of 1.3% over the last month, surpassing the Industrial Products sector's gain of 1.09% and falling behind the S&P 500's gain of 3.94%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company is forecasted to report an EPS of $1.62, showcasing a 9.46% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.9 billion, up 6.05% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6 per share and a revenue of $18.06 billion, representing changes of +9.29% and 0%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 0% downward. Emerson Electric presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.31 right now. This signifies a discount in comparison to the average Forward P/E of 23.89 for its industry.
Meanwhile, EMR's PEG ratio is currently 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.92.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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