In the latest close session, Emerson Electric (EMR) was up +1.94% at $145.62. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
The maker of process controls systems, valves and analytical instruments's shares have seen an increase of 5.09% over the last month, surpassing the Industrial Products sector's gain of 1.45% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is expected to report EPS of $1.41, up 2.17% from the prior-year quarter. 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 full year, the Zacks Consensus Estimates are projecting earnings of $6.44 per share and revenue of $18.87 billion, which would represent changes of +7.33% and +4.76%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 22.18 right now. This valuation marks a discount compared to its industry average Forward P/E of 23.45.
We can additionally observe that EMR currently boasts a PEG ratio of 2.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.77.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 32, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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