In the latest trading session, Emerson Electric (EMR) closed at $139.57, marking a +1.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.35%, and the tech-heavy Nasdaq lost 0.26%.
The maker of process controls systems, valves and analytical instruments's shares have seen an increase of 3.45% over the last month, surpassing the Industrial Products sector's gain of 3.19% and the S&P 500's gain of 0.89%.
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 $1.41 per share. This would mark year-over-year growth of 2.17%. In the meantime, our current consensus estimate forecasts the revenue to be $4.34 billion, indicating a 4.05% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.46 per share and a revenue of $18.87 billion, representing changes of +7.67% and +4.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 moved 0.47% higher. Emerson Electric is currently a Zacks Rank #3 (Hold).
Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 21.2. This represents a discount compared to its industry average Forward P/E of 25.35.
Investors should also note that EMR has a PEG ratio of 2.23 right now. 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. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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