In the latest market close, Emerson Electric (EMR) reached $100.49, with a +0.76% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.81%. On the other hand, the Dow registered a gain of 1.56%, and the technology-centric Nasdaq increased by 2.06%.
The maker of process controls systems, valves and analytical instruments's shares have seen a decrease of 8.67% over the last month, surpassing the Industrial Products sector's loss of 11.25% and falling behind the S&P 500's loss of 6.14%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company's upcoming EPS is projected at $1.41, signifying a 3.68% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.38 billion, showing a 0.09% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $17.87 billion, demonstrating changes of +8.74% and +2.14%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Emerson Electric currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 16.7. This valuation marks a discount compared to its industry's average Forward P/E of 17.74.
It is also worth noting that EMR currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% 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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