Emerson Electric Co. EMR shares soared 5.2% in the last trading session to close at $142.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.1% loss over the past four weeks.
Emerson’s rally is primarily driven by optimism over strong momentum in Intelligent Devices segment. Within the segment, EMR is seeing strength in the Final Control business, driven by solid momentum in power end markets. Also, robust growth across the Americas and Asia, Middle East & Africa regions bode well for it.
This maker of process controls systems, valves and analytical instruments is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $4.34 billion, up 4.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Emerson Electric, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EMR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Emerson Electric is part of the Zacks Manufacturing - Electronics industry. Powell Industries (POWL), another stock in the same industry, closed the last trading session 2.5% higher at $361.39. POWL has returned 3% in the past month.
Powell Industries' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.85. Compared to the company's year-ago EPS, this represents a change of -0.4%. Powell Industries currently boasts a Zacks Rank of #2 (Buy).
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Emerson Electric Co. (EMR): Free Stock Analysis Report Powell Industries, Inc. (POWL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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