Emerson Electric (EMR) closed the most recent trading day at $137.79, moving +1.68% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.48%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.
The maker of process controls systems, valves and analytical instruments's shares have seen an increase of 12.56% over the last month, surpassing the Industrial Products sector's gain of 6.87% and the S&P 500's gain of 5.13%.
Analysts and investors alike will be keeping a close eye on the performance of Emerson Electric in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.51, showcasing a 5.59% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.57 billion, up 4.4% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.01 per share and revenue of $18.07 billion, which would represent changes of +9.47% and +3.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Emerson Electric currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 22.56. This signifies no noticeable deviation in comparison to the average Forward P/E of 22.56 for its industry.
We can additionally observe that EMR currently boasts a PEG ratio of 2.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.93.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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