Strength in Intelligent Devices Unit Aids Emerson: Will the Momentum Last?

Emerson Electric Co. EMR is benefiting from the solid momentum in its Intelligent Devices segment of late. Within the segment, the company is witnessing persistent strength in the Final Control business, supported by a strong demand environment across power end markets. Sales from this business increased 4% year over year in the first nine months of fiscal 2025 (ended June 2025).

Robust growth across the Americas and Asia, the Middle East & Africa regions is aiding Emerson’s Measurement & Analytical business. Sales from the business rose 2% year over year in the first nine months of the fiscal year. However, softness in the Safety & Productivity business, owing to tepid demand for its products across all geographies, remains concerning for the segment’s overall growth. Sales from the business declined 4% in the first nine months of fiscal 2025.

Apart from this, EMR’s Software and Control segment is well poised to benefit from strong growth in its AspenTech unit and strength in the power and process end markets. Given the strength across the majority of its businesses, Emerson expects net sales to increase approximately 3.5% year over year in fiscal 2025 (ended September 2025). Underlying sales are also anticipated to grow about 3.5% year over year in the same period.

Segment Snapshot of EMR’s Peers

As one of Emerson’s peers, Flowserve Corporation FLS is experiencing strength in the Pump Division segment. Strength in the aftermarket business, driven by a strong demand for products and services in North America, the Middle East and Africa, is a prime catalyst for the Flowserve Pump Division segment’s growth. Its revenues totaled $818.9 million in the first six months of 2025, up 1.3% year over year.

Another peer, Ingersoll Rand Inc. IR continues to see higher orders across its product portfolio of industrial vacuums, blowers and compressors, which will drive the Industrial Technologies & Services segment. The segment’s revenues totaled $1.49 billion, up 1.7% year over year in the second quarter of 2025.

EMR’s Price Performance, Valuation and Estimates

Shares of Emerson have gained 11.8% in the past year compared with the industry’s growth of 6.8%.

From a valuation standpoint, EMR is trading at a forward price-to-earnings ratio of 19.41X, below the industry’s average of 22.52X. Emerson carries a Value Score of C.

The Zacks Consensus Estimate for EMR’s fiscal 2025 earnings has been on the rise over the past 60 days.

Emerson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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