Emerson Electric (EMR) ended the recent trading session at $129.77, demonstrating a +1.24% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.76%.
Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 5.51% over the course of the past month, underperforming the Industrial Products sector's loss of 0.75%, and the S&P 500's gain of 1.14%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company's earnings per share (EPS) are projected to be $1.61, reflecting a 8.78% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.89 billion, up 5.93% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6 per share and a revenue of $18.05 billion, demonstrating changes of +9.29% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Currently, Emerson Electric is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 19.79. This valuation marks a discount compared to its industry average Forward P/E of 23.15.
We can additionally observe that EMR currently boasts a PEG ratio of 2.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% 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.
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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