Emerson Electric (EMR) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Emerson Electric (EMR) closed at $148.37, marking a -1.31% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.

The maker of process controls systems, valves and analytical instruments's stock has dropped by 8.22% in the past month, falling short of the Industrial Products sector's loss of 5.26% and the S&P 500's loss of 1.37%.

The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is predicted to post an EPS of $1.84, indicating a 13.58% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.1 billion, indicating a 5.1% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.55 per share and a revenue of $18.88 billion, signifying shifts of +9.17% and +4.79%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.08% fall in the Zacks Consensus EPS estimate. Currently, Emerson Electric is carrying a Zacks Rank of #3 (Hold).

Investors should also note Emerson Electric's current valuation metrics, including its Forward P/E ratio of 22.95. This indicates a discount in contrast to its industry's Forward P/E of 24.

Meanwhile, EMR's PEG ratio is currently 2.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.64.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 101, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.

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