Emerson Electric (EMR) ended the recent trading session at $132.73, demonstrating a +2.54% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.97%.
The maker of process controls systems, valves and analytical instruments's shares have seen an increase of 8.1% over the last month, surpassing the Industrial Products sector's gain of 4.07% and the S&P 500's gain of 5.12%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.51, marking a 5.59% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.57 billion, indicating a 4.26% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6 per share and revenue of $18.06 billion, which would represent changes of +9.29% and +3.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. 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 21.57 right now. This represents a discount compared to its industry average Forward P/E of 21.81.
Also, we should mention that EMR has a PEG ratio of 2.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.84.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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