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Emerson Electric (EMR) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Emerson Electric (EMR - Free Report) closed at $93, marking a -1.84% move from the previous day. This change lagged the S&P 500's 1.3% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.45%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 2.2% in the past month. In that same time, the Industrial Products sector lost 3.55%, while the S&P 500 lost 5.33%.
Emerson Electric will be looking to display strength as it nears its next earnings release. In that report, analysts expect Emerson Electric to post earnings of $1.18 per share. This would mark year-over-year growth of 21.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.7 billion, up 6.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $19.48 billion. These totals would mark changes of +21.71% and +6.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Emerson Electric currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 19. For comparison, its industry has an average Forward P/E of 19.73, which means Emerson Electric is trading at a discount to the group.
Also, we should mention that EMR has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.69 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.
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Emerson Electric (EMR) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Emerson Electric (EMR - Free Report) closed at $93, marking a -1.84% move from the previous day. This change lagged the S&P 500's 1.3% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.45%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 2.2% in the past month. In that same time, the Industrial Products sector lost 3.55%, while the S&P 500 lost 5.33%.
Emerson Electric will be looking to display strength as it nears its next earnings release. In that report, analysts expect Emerson Electric to post earnings of $1.18 per share. This would mark year-over-year growth of 21.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.7 billion, up 6.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $19.48 billion. These totals would mark changes of +21.71% and +6.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Emerson Electric currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Emerson Electric is holding a Forward P/E ratio of 19. For comparison, its industry has an average Forward P/E of 19.73, which means Emerson Electric is trading at a discount to the group.
Also, we should mention that EMR has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.69 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.