In the latest trading session, Emerson Electric (EMR) closed at $145.22, marking a -2.84% move from the previous day. This change lagged the S&P 500's 2.06% loss on the day. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 2.39%.
Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 10.72% over the past month, outpacing the Industrial Products sector's gain of 8.4% and the S&P 500's gain of 1.63%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company's earnings report is expected on February 3, 2026. 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 $4.35 billion, indicating a 4.22% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.48 per share and revenue of $18.86 billion, which would represent changes of +8% and +4.71%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.64% rise in the Zacks Consensus EPS estimate. Currently, Emerson Electric is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 23.06. This valuation marks a discount compared to its industry average Forward P/E of 23.24.
We can also see that EMR currently has a PEG ratio of 2.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.88.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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