In the latest close session, Emerson Electric (EMR) was up +1.02% at $130.73. This move lagged the S&P 500's daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.
The stock of maker of process controls systems, valves and analytical instruments has risen by 9.45% in the past month, leading the Industrial Products sector's gain of 3.21% and the S&P 500's gain of 3.92%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. In that report, analysts expect Emerson Electric to post earnings of $1.51 per share. This would mark year-over-year growth of 5.59%. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 4.26% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6 per share and a revenue of $18.06 billion, signifying shifts of +9.29% and +3.26%, respectively, from the last year.
It is also important to note the recent changes to 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 suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% increase. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).
Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 21.57. Its industry sports an average Forward P/E of 21.57, so one might conclude that Emerson Electric is trading at no noticeable deviation comparatively.
It is also worth noting that EMR currently has a PEG ratio of 2.56. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.83.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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