Emerson Electric's Weak Fundamentals: A Potential Correction in the Share Price?

Emerson Electric's (NYSE:EMR) stock increased by 8.8% in the past month, but its weak fundamentals raise concerns. The company's Return on Equity (ROE) is 11%, similar to the industry average, but net income growth has been flat over the past five years. The industry saw an average growth of 19% in the same period. Despite this, the investor should consider if the expected growth or decline in earnings is priced in, to establish if the stock's share price is justified.